MBA GRADUATE DISSERTATION

A quantitative analysis of Consumer Behaviour in relation to

Electronic Cars resulting in a new Green Marketing approach for
the German car industry

Dublin Business School

MBA Programme
January Intake 2013
Supervisor: David Hurley

Attached by:

Julia Dieterich
Student Number: 1779797
Date of attachement: 23th May 2014
Declaration

I declare that the work described in this dissertation is, except where otherwise stated, entirely my own
work and has not been submitted as any type of exercise for a degree at this or any other
college/university.

Signed :
!

Julia Dieterich

23th May 2014

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Table of contents

Table  of  contents  ...............................................................................................................................................  3  

List  of  Figures  .....................................................................................................................................................  6  
Acknowledgements  ..........................................................................................................................................  8  
Abstract  ................................................................................................................................................................  9  
1.  Justification  of  the  Dissertation  Topic  .................................................................................................  10  
1.1   Academic  Justification  ...................................................................................................................................  10  
1.2   Industrial  Justification  ...................................................................................................................................  11  
1.3   Personal  Justification  .....................................................................................................................................  12  
2.  Literature  Review  .......................................................................................................................................  13  
2.1  Introduction  ..........................................................................................................................................................  13  
2.2  Academic  Review  .................................................................................................................................................  13  
2.2.1  Consumer  Behaviour  in  the  German  E-­‐car  industry  .........................................................................................  13  
2.2.1.1  Role  of  Marketing  Communication  in  Consumer  Behaviour  Theory  .....................................................................  13  
2.2.1.2  The  Hierarchy  of  Effects  model  ..............................................................................................................................................  13  
2.2.1.3  Consumer  Proposition  Acquisition  Process  Model  ........................................................................................................  14  
2.2.1.4  Influence  factors  on  the  E-­‐car  Purchasing  Decision  Process  .....................................................................................  15  
2.2.1.4.1  Consumer  Opinion  leads  to  Consumer  Attitude  ....................................................................................................  16  
2.2.1.4.2  Rational  and  emotional  driven  Purchasing  Process  of  an  E-­‐car  .....................................................................  16  
2.2.2  Branding  Strategy  in  the  German  E-­‐car  industry  ...............................................................................................  17  
2.2.2.1  Definition  of  a  Brand  ...................................................................................................................................................................  17  
2.2.2.2  Consumer-­‐based  perspective  on  Brand  Equity  ...............................................................................................................  17  
2.2.2.2.1  Brand  Perception  ................................................................................................................................................................  18  
2.2.2.2.2  Brand  Image  ..........................................................................................................................................................................  19  
2.2.2.3  The  ValueDrivers  model  ............................................................................................................................................................  19  
2.2.3    A  Green  Branding  approach  in  relation  to  the  German  E-­‐car  industry  ....................................................  21  
2.2.3.1  Definition  of  Green  Branding  ...................................................................................................................................................  21  
2.2.3.2  Danger  of  Green  Washing  .........................................................................................................................................................  21  
2.2.3.3  Marketing  Communications  of  a  Green  Brand  .................................................................................................................  22  
2.2.3.4  Green  Brand  building  of  German  E-­‐car  producers  .........................................................................................................  22  
2.3  Contextual  Review  ..............................................................................................................................................  23  
2.3.1  German  E-­‐car  industry  ...................................................................................................................................................  23  
2.3.1.1  Evolution  and  Future  Outlook  of  the  German  E-­‐car  industry  ...................................................................................  23  
2.3.1.2  Reasons  for  the  actual  low  Consumer  Demand  of  E-­‐cars  in  Germany  ..................................................................  24  
2.3.2  E-­‐car  Brand  Strategy  of  BMW  .....................................................................................................................................  25  
2.3.2.1  Brand  Strategy  of  BMW  .............................................................................................................................................................  25  
2.3.2.2  Goal  of  the  Brand  Strategy  of  the  BMW  Group  ................................................................................................................  25  
2.3.2.3  Communicated  Brand  Image  in  the  Marketing  Campaign  of  the  brand  BMWi  .................................................  26  
2.4  Conclusion  .............................................................................................................................................................  26  
3.  Research  Methodology    and  Methods  ..................................................................................................  27  
3.1  Introduction  ..........................................................................................................................................................  27  
3.2  Overall  Quantitative  Research  Objectives  ..................................................................................................  27  
3.3  Positivism  ..............................................................................................................................................................  27  
3.4  Deductive  Method  ...............................................................................................................................................  28  
3.5  Hypotheses  ............................................................................................................................................................  28  
3.6  Survey  ......................................................................................................................................................................  30  
3.7  Non-­‐Probability  Sampling  ................................................................................................................................  30  
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 3.8  Quota  Sampling  ....................................................................................................................................................  31  
3.9  Sample  and  Quota  groups  .................................................................................................................................  31  
3.9  Quantitative  data  collection  and  sampling  tool  ........................................................................................  32  
3.10  Data  Analysing  ...................................................................................................................................................  32  
3.11  Methodology  Plan  .............................................................................................................................................  32  
3.11.1  Limitations  ........................................................................................................................................................................  32  
3.11.2  Ethical  Implications  ......................................................................................................................................................  33  
3.11.3  Time  Allocation  ...............................................................................................................................................................  34  
3.12  Conclusion  ...........................................................................................................................................................  34  
4.  Data  Analysis  ................................................................................................................................................  35  
4.1  Introduction  ..........................................................................................................................................................  35  
4.2  Data  Analysis  of  the  Sample  .............................................................................................................................  35  
4.3  Data  Analysis  for  Hypothesis  1  .......................................................................................................................  39  
4.3.1  Product  Information  ........................................................................................................................................................  39  
4.3.2  Brand  Personality  .............................................................................................................................................................  43  
4.3.3  Product  Associations  .......................................................................................................................................................  45  
4.3  Data  Analysis  for  Hypothesis  2  .......................................................................................................................  50  
4.4  Data  Analysis  for  Hypothesis  3  .......................................................................................................................  54  
4.5  Data  analysis  for  Hypothesis  4  ........................................................................................................................  57  
4.6  Recommendations  ..............................................................................................................................................  62  
4.6.1  Future  Academic  Study  ..................................................................................................................................................  62  
4.6.2  Recommendations  for  the  Industry  ..........................................................................................................................  64  
4.6.2.1  Recommendations  for  the  Consumer  Behaviour  ............................................................................................................  64  
4.6.2.2  Recommendations  for  Hypothesis  1  ....................................................................................................................................  65  
4.6.2.3  Recommendations  for  Hypothesis  2  ....................................................................................................................................  65  
4.6.2.4  Recommendations  for  Hypothesis  3  ....................................................................................................................................  66  
4.6.2.5  Recommendations  for  Hypothesis  4  ....................................................................................................................................  66  
4.7  Conclusion  .............................................................................................................................................................  66  
5.  Overall  Conclusion  .....................................................................................................................................  67  
6.  Self  Reflection  on  Own  Learning  and  Performance  ........................................................................  68  
6.1.  Introduction  .........................................................................................................................................................  68  
6.2.  Learning  Style  Theories  ...................................................................................................................................  68  
6.3.  Personal  Achievements  ....................................................................................................................................  70  
6.4.  Problems  encountered  .....................................................................................................................................  71  
6.6.  Action  plan  for  a  life  long  Learning  Process  ..............................................................................................  71  
6.7.  Conclusion  ............................................................................................................................................................  72  
7.  Appendices  ...................................................................................................................................................  73  
Appendix  A:  The  BMW  overall  corporate  strategy  ‘Number  One’  ..................................................  73  
Appendix  B:  Questionnaire  ..........................................................................................................................  74  
Appendix  D:  EU  Data  Protection  Legislation  .........................................................................................  81  
Appendix  E:  BMWi3  Marketing  campaign  in  Germany  ......................................................................  81  
Appendix  F:  Brand  portfolio  of  BMW  .......................................................................................................  82  
Appendix  G:  Reasons  for  the  high  price  of  E-­‐cars  ................................................................................  82  
8.  Bibliography  .................................................................................................................................................  84  

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List of Abbreviations

% Per cent
BMW Bayerische Motoren Werke
BMWi E-car series of BMW
BMWi3 E-car of BMW
BMWi8 Sports E-car of BMW
bn Billion
CO2 Carbon dioxide
E-car Electronic car
eco ecological
EU European Union
EV electronic vehicle
LOHAS Lifestyle of Health and Sustainability
mil Millions
R&D Research and Development

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List of Figures
Figure 1: Different Stages of the Dissertation Process ............................................................................. 11  
Figure 2: Hierarchy of Effects Models ..................................................................................................... 14  
Figure 3: Interpretation of the Hierarchy of Effects model and the Consumer Proposition Acquisition
Process .............................................................................................................................................. 15  
Figure 4: Aaker’s Brand Equity Model .................................................................................................... 18  
Figure 5: Managing Brand Equity ............................................................................................................ 19  
Figure 6: The ValueDrivers model ........................................................................................................... 20  
Figure 7: Evolution of Demand of E-cars ................................................................................................ 23  
Source: Prof. Dr Ing. Spath et al., 2012. ................................................................................................... 23  
Figure 8: Development of Demand of E-cars till 2020 ............................................................................ 24  
Figure 9: Gender of the Sample ................................................................................................................ 35  
Figure 10: Age of the Sample ................................................................................................................... 36  
Figure 11: Education Level of the Sample ............................................................................................... 36  
Figure 12: Net Income of the Sample ....................................................................................................... 37  
Figure 13: Present Demand of E-cars ....................................................................................................... 38  
Figure 14: Future Demand of E-cars ........................................................................................................ 38  
Figure 15: Reasons for not buying an E-car ............................................................................................. 39  
Figure 16: Estimated costs of the BMWi3 ............................................................................................... 40  
Figure 17: Estimated charging time of the BMWi3 ................................................................................. 41  
Figure 18: Estimated reach of the BMWi3 ............................................................................................... 42  
Figure 19: Estimated acceleration of the BMWi3 in 3.7 seconds ............................................................ 43  
Figure 20: Associated Product Attributes with the BMWi3..................................................................... 44  
Figure 21: Associated positive Product Attributes with the BMWi3 ....................................................... 45  
Figure 22: Associated negative Product Attributes with the BMWi3 ...................................................... 45  
Figure 23: Associated Attributes considering the BMWi3 as a Status Symbol ....................................... 46  
Figure 24: Associated Lifestyle with the BMWi3 .................................................................................... 47  
Figure 25: Associated Gender with the BMWi3 ...................................................................................... 47  
Figure 26: Associated Consumer Age with the BMWi3 .......................................................................... 48  
Figure 27: Associated Characteristics considering the BMWi3 as a Person ............................................ 49  
Figure 28: Perceived added value of the BMWi3 in total ........................................................................ 52  
Figure 29: Perceived added value of the BMWi3, which is not important .............................................. 52  
Figure 30: Perceived added value of the BMWi3, which is important .................................................... 53  
Figure 31: Perceived added value of the BMWi3, which is very important ............................................ 53  
Figure 32: Perceived added value of the BMWi3, which is indispensable .............................................. 54  
Figure 33: Trusting the car manufacturer BMW ...................................................................................... 55  
Figure 34: Believe in Honesty of the BMW ............................................................................................. 55  
Figure 35: Understanding the Marketing Message of the BMW ............................................................. 56  
Figure 36: Believe in the Success of the BMWi3 .................................................................................... 56  
Figure 37: Identification with the brand BMWi ....................................................................................... 57  
Figure 38: Associated feelings with the brand BMWi ............................................................................. 58  
Figure 39: Associated Intrinsic Emotions with the brand BMWi ............................................................ 59  
Figure 40: Associated Emotions with the brand BMWi when watching the Marketing Movie .............. 60  
Figure 41: Associated Extrinsic Emotions with the brand BMWi ........................................................... 61  
Figure 42: Associated Intrinsic and Extrinsic Emotions with the brand BMWi in an overview ............. 62  
Figure 43: Learning Cycle of Kolb........................................................................................................... 69  
Figure 44: Four different Learning Styles ................................................................................................ 70  
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List of Tables
Table 1: User and Non User quota ........................................................................................................... 31  
Table 2 : Male and femal quota ................................................................................................................ 32  
Table 3: Time Allocation Overview ......................................................................................................... 34  
Table 4: Perceived added Value of the BMWi3 ....................................................................................... 51  

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Acknowledgements
Having completed three months of work on my master thesis, I would first like to thank my supervisor,
David Hurley, whose guidance and support have made this dissertation possible. I appreciate the great
collaboration especially because we have never met in person and despite the communication was great.

I would like to thank my parents, Peter and Sabine Dieterich, and my sister, Sarah Dieterich, all of
whom supported me emotionally and entered into discussions with me whenever I was struggling with
the dissertation. My family provided me great and indispensable support back from my home country
Germany during the whole MBA study in Dublin, from which I felt strengthened to complete my study
with passion, ambition and vitality. Additional, I would like to thank my friend, Laura Wels, for her
precious help and friendship throughout the whole year in Dublin. Finally, my gratitude goes out to all
respondents who answered my questionnaire and helped provide valuable academic knowledge.

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Abstract
This academic investigation for the Dublin Business School by Julia Dieterich, an MBA graduate in
2014, will discuss how to market effectively the innovative electronic car in the German automotive
sector in relation to a green branding marketing approach. It could be proved that the demand for
electronic cars is currently mildly growing and just will be increase in a long term. An optimized
marketing approach should help to solve this current industrial problem. A quantitative survey will
provide information about why the demand for electronic cars is low and how potential customers in
Germany perceive current marketing activities. Based on the identified issues of marketing activities,
valuable recommendations on how to market an electronic car successfully in Germany will be
provided.

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1. Justification of the Dissertation Topic
1.1 Academic Justification
The goal of this dissertation is to analyse the reasons behind the proved, mildly growing demand for E-
cars and to provide valuable recommendations for an improved marketing strategy (Elektroauto, no
date). These will be elaborated in due consideration of consumer behaviour theory, branding strategy
theory and green branding theory, which will be discussed in the literature review. It needs to be
analysed how the potential E-car consumer behaves during the purchase process in order to be able to
influence this behaviour through targeted marketing activities. Additionally, it is necessary to
investigate how the current marketing activities of German E-car brand manufacturers can be optimized.
Hence, branding strategy theory has to be researched in order to understand how a brand should be
communicated successfully. In this case, the E-car can be categorized as a ‘green branded product’,
which needs to be marketed according to specific branding requirements. A ‘green brand’ is defined by
a specific set of brand attributes and facilities related to a perceived environmentally friendly approach.
Some studies deal with the perceived value of a green brand and ways to communicate green brands
properly but not in relation to the marketing strategy of electronic cars (Hartmann, ApoalazaIba´n˜ez,
ForcadaSainz, 2005, p. 10). Frank Dophreide, German marketing manager and CEO of a leading
German marketing agency, pointed out that German E-car brands have to fulfil successfully the gap
between a modern premium car and a new environmentally friendly concept (Steinkirchner, 2013).
Therefore, green-branding rules in relation to E-cars will be discussed in the literature review. Valuable
Green branding theory discussing how to market green branded product the best way can be adapted to
branding strategy of E-cars. Green brands should no longer be perceived as a niche market trend, but
rather as building environmental standards into mainstream brands. In the current century, consumption
develops increasingly in the direction of individuality, innovation and sustainability, which proves the
increasing consumer demand for green products. There is a trend of people returning to the older, more
basic values and natural products instead of Americanised mass consumption (Gordon, 2002, p. 3).
The results of this academic paper should provide important information for the car industry regarding
how to sell a green product minus the green brand image. The added value of this academical paper is to
provide significant new knowledge regarding how to market E-cars in Germany sucessfully, while
influencing consumers’ buying behaviour positively. Despite the proved, mildly growing demand for E-
car today, further studies show that on a long term the demand for E-cars will rise significantly, what
will be discussed in chapter ‘2.2.1. German E-car industry’. Thefore it is important to analyse current
marketing strategies on the german E-car sector, how they can be optimize to ifluence the future demand
positively.
For a successful investigation the dissertation follows a logical structure to facilitate the understanding
for the reader of this dissertation, which will be described in the following (figure 1). The advanced
research for this dissertation let the researcher identify a lack of literature, which is discussed in this
chapter. The researcher identified the industrial problem of a mildly growing consumer demand for
electronic cars. The researcher combines the academic literature in the fields of consumer behaviour,
branding strategy and green branding strategy with the industrial literature to solve the problem of low
demand and a lack of academic knowledge how to market E-cars properly. Through a quantitative
survey the researcher wants to investigate the reasons for the low E-car demand in German also in
relation to current marketing activities on German the E-car sector. Data findings and adapted academic
theory, how to market green branded product successfully will lead to a new recommended marketing
approach to optimize marketing activities on the German E-car sector in the future.

10
Figure 1: Different Stages of the Dissertation Process

1.2 Industrial Justification

In recent years, the innovative electronic car has increasingly penetrated the German car industry
(Bayme vbm, 2012, p. 14). The chairman of BMW pointed out that the electronic car will be the future
means of transportation. He guaranteed technological improvement and innovative progress of the
electronic vehicle (Prof. Dr. Jung et al., 2012, p. 4). An electronic car is defined as a general vehicle that
is driven by an electromotor using electric energy. It is also called an electric vehicle (EV) or a zero
emission vehicle, as it gets its energy from batteries. The charging process requires an average socket or
a public charging station (Backhaus et al., 2011, p. 3). In comparison, hybrid cars are also electro-driven
but have a combustion engine (VDA, 2013, p.136). From a political and ecological perspective, it is
important to increase the usage of electronic cars in order to achieve a reduction in environmentally
damaging emissions, thereby additionally providing value for social welfare. Protecting the environment
is a political goal as scientific studies show that the ozone is increasingly destroyed by ecological
damage through, for example, automobile exhaust. The electronic car is a future mobility solution that
does not pollute the environment and that, therefore, contributes towards reducing greenhouse gas
emissions (VDA, 2013, p. 117). Statistics indicate that 70% of the population will live in cities in 2050.
Urban environmentally friendly mobility thus becomes even more important. The Environmental Action
Program of the EU commission, in force from 2013 to 2020, has set the future development goals for
the car industry. The car industry has to produce and operate in a more resource-efficient and
environmentally friendly manner. The EU government has set further goals for the reduction of CO2
pollution by 2020 after the introduction, in 2006, of strong regulations to produce cars that cause 18%
less CO2 pollution. The EU commission has also introduced longer tax exemptions for electronic motor
vehicles for over 10 years, to enforce positive development of the electronic car industry. Under these
conditions, the German E-car sector is forced to invest in R&D, restructure processes and gaining
additional expertise very fast to meet governmental requirements (VDA, 2013, p. 117).
The previously listed facts underline the importance of a successful marketing strategy for E-cars today
in the German automobile sector. But the proven low private demand for E-cars in Germany is
concerning (FOM, 2010, p. 72). In January 2014, 12,156 electro vehicles were registered by the German
Federal Office for Motor Traffic (Elektroauto, no date).
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To add new information to this research field, the current marketing campaign of BMW for its E-cars
series, BMWi, will be analysed as a base for a critical analysis of how a customer reacts to E-car
marketing campaigns and what can be improved further. The BMW Group is one of the most successful
automobile and motorcycle manufacturers worldwide, and one of the largest industrial companies in
Germany. BMW is also a pioneer of doing big, global marketing campaigns for their new E-car model
in Germany in 2013. Hence, the BMW is chosen as representative for all German E-car brands
(MarketLine, 2013, p. 4). The new premium E-car BMWi3, and the sports E-car BMWi8, were
introduced in November 2013 at the IAA, the biggest German automobile exhibition. The integrated
marketing strategy of the BMW i3 consists of print, online and TV campaigns. The main goal of the
campaign is to create a positive emotion in relation to the product by encouraging potential customers to
sign up for a driving experience. The campaign has an international and consistent online appearance
with focus on the marketing movie. The campaign also includes activities in the area of social media,
like the Facebook page with a configuration mode and the possibility to register for a BMWi3 test drive
(OnetoOne, 2013). Frank Dophreide evaluated the BMW marketing strategy. BMW has to fulfil
successfully the gap between a modern premium car and a new environmentally friendly concept. The
electronic vehicle will be the car of the future and needs to be sold to a broad population in future. Thus,
it is important that BMW sells its new E-cars like conventional cars. Public clichés—like, electronic
cars are just for people from the eco-movement—must be prevented. The BMW brand symbolizes
dynamic design and driving passion, which must extend to the new electronic car as well. The new
sports E-car model, BMWi8, breaks the cliché of electronic cars with its sports car features. Since the
model underlines the revolution of electronic cars, it was a good strategy to present both models at the
same time. The public may expect a revolutionary campaign and product presentation, which BMW
consciously wants to avoid. The concept of the electronic car itself is revolutionary enough. The
marketing team of BMW feels that the more spectacular the staging of the E-car, the higher the entry
barriers for customers. BMW wants to persuade customers to purchase the electronic car in a natural
way. The most important marketing tool and the main goal of the campaign will be the personal driving
experience. The customer can experience the E-car with all his senses, feeling the power and the driving
fun. The customer should be curious and become familiarized with the E-car (Steinkirchner, 2013). The
German car industry can remain successful when it takes part in the ecological revolution. The car
should no longer be a status symbol; it must be reinvented (Heuser, Lamparter, Pinzler, 2011). This
academic investigation analyses how successful the marketing campaign of BMW was through
analysing how the consumer perceives the BMWi brand today and if they are willed to buy an E-car or
if the marketing campaign influenced their consumer behaviour positive. From the analyses of the
BMW marketing campaign 2013 for E-cars, valuable recommendations for German E-car brand
manufacturer can be provided how to optimize marketing activities for E-cars in general.

1.3 Personal Justification

The researcher of this academic investigation has a bachelor’s degree in Business Administration and
Economics and an advanced master’s degree in Business Administration, with both degrees focusing
consistently on marketing. Furthermore, the researcher gathered important practical experience during
one-year internships in the marketing departments of L’Oréal and Estée Lauder. Due to the educational
and professional background o fthe researcher, he decided to provide significant new knowledge in the
field of marketing. In recent years, the researcher has developed a particular interest in green marketing
literature. Green marketing is a responsible management process that identifies and satisfies those
stakeholder requirements that do not affect human or natural environmental well-being (Emery, 2012, p.
17). Due to the researcher’s personal interest in this field, he was interested in the BMW marketing
campaign for the new premium electronic car series, BMWi, in Germany and the already discussed lack

12
of customer acceptance for E-cars (Steinkirchner, 2013). The researcher was interested in determining
how to market green branded products successfully in relation to the new electronic car series of BMW.

2. Literature Review
2.1 Introduction
The literature review provides information about academic studies and theoretical result in the field of
Consumer Behaviour, Branding Strategy and Green Marketing. It also provides contextual information
about the German E-car industry and the German E-car producer BMW to give an overview of the
actual status of the knowledge and progress in the marketing communication activities in the German E-
car market.

2.2 Academic Review

2.2.1 Consumer Behaviour in the German E-car industry
In the following, the consumer behaviour of E-car consumers in Germany will be analysed to gain
consumer knowledge about how to market an E-car in the most effective way.

2.2.1.1 Role of Marketing Communication in Consumer Behaviour Theory

Consumer behaviour is an important aspect of marketing and brand management. The science of
consumer behaviour tries to analyse the intrinsic and extrinsic behaviour of consumers and provides
guidance for the interface with the consumer (Kroeber-Riel, Gröppel- Klein, 2013, p. 3). Consumer
behaviour is the study of the process and intensity of involvement of a consumer in the on-going
purchasing process to satisfy his needs and desires (Salomon, 2013, p. 39). The consumer will go
through the three stages of identifying his needs, making a purchase, which results in a disposure
(Salomon, 2013, p. 39). A purchase can be defined as the exchange of money for goods and services
between purchaser and vendor (McNeal, 2007, p. 51). During this process, cognitions, perceptions and
learning will be developed, which are important to get deep insight into how the marketer can make
positive changes to influence the purchasing process (Baines, 2011, p. 80). But in this study,
understanding the concept of consumer behaviour is not just enough. It also has to be analysed how
marketing communications can influence the buying behaviour. The theory of marketing
communications tries to clarify how to influence positively the decision-making process of the
consumer.

2.2.1.2 The Hierarchy of Effects model

The Hierarchy of Effects model clarifies how marketing communication can influence the decision-
making process, which the consumer goes through, resulting in the purchase (Picktin, Broderick, 2004,
p. 84). The Hierarchy of Effects model assumes that the consumer is highly involved in the purchase
process and that he is an intelligent, rational, problem-solving human, who stores and evaluates
information to make a reasoned decision (Picktin, Broderick, 2004, p.70). There exists a verity of
Hierarchy of Effects models, which follow the concept of the cognitive model and its influence factors
on the purchase process, which is visualized in figure 7. Most cognitive models proceed from the stage
of problem definition, where the consumer is influenced by external stimuli and develops his needs. The
second stage is the information-seeking process, which results in the evaluation of the different
alternatives. In this stage of problem-solving exists a high impact of influence. It comes to a purchase
and post-purchase evaluation process, where the consumer evaluates whether his needs are satisfied or
not (Picktin, Broderick, 2004, p. 84).

13
Figure 2: Hierarchy of Effects Models

Source: John E., 2007.

The most often cited Hierarchy of Effects model was developed by Lavidge and Steiner, which
proposes seven steps of purchase process (Hoang Sinh, 2013, p. 92). The initial situation is that the
consumer is completely unaware of the existence of the product or service. At the first cognitive level,
the consumer becomes aware of the product and gains product knowledge to assess if the product can
satisfy his needs. At the second level of affective process, the consumer develops a positive attitude
towards the product leading to product preference. During the conative process, the consumer is
convinced to buy the product, followed by purchase. The series of effects is managed in a successive
order over a period of time whereby each step must be fulfilled before the consumer can proceed to the
next step (Lavidge, Steiner, 1961, p. 137). The model has been regarded as measurement tool for the
effectiveness of advertising (Hoang Sinh, 2013, p. 92). In 2000, Robert Heath criticized the Hierarchy of
Effects model saying that it was not strong enough to affect the consumer actively. The information
overflow aggravated the differentiation from competitor brands (Rainey, 2010). Moreover, Egan John
added that the Hierarchy of Effects model does not prove that the consumer fulfils each stage and that
he behaves interactively between different stages (Egan, 2007, p. 52). It can be also assessed that the
Hierarchy of Effects model does not analyse the post-purchase process. In contrast, James McNeal
separates the purchase process in pre-purchase, purchase and post-purchase actions towards a
commercial object. McNeals describes the post-purchasing action as the most important because it will
determine the future purchase for the same or similar type of product (McNeal, 2007, p. 51). Barry
defends the Hierarchy of Effects model saying that it is an important and indicatory guideline for
integrated marketing communication action. The measurement process of advertisement is highly
complex and the model is rational and logical providing scope for further research in this field (Barry,  
2002,  p.  45).  For  a  valuable  theory  research  the  ‘Consumer Proposition Acquisition Process Model’ will
be discussed to complement the Hierarchy of Effects model, adding theory about the after-purchase
process.

2.2.1.3 Consumer Proposition Acquisition Process Model

The importance of the post-purchase process model of the consumer proposition acquisition process
underlines the importance of the re-evaluation phases and the interactivity between the single stages
which means that in each stage of purchase, the consumer could go back to the previous stage or move
forward in the process as it is visualised in the figure 3 (Baines, 2011, pp. 81).

14
Figure 3: Interpretation of the Hierarchy of Effects model and the Consumer Proposition Acquisition
Process

Source: Interpretation of Baines, P., 2011.

The model ‘Consumer Proposition Acquisition Process’ is composed of six interactive stages of
consumer experiences. In the first stage, the consumer identifies a problem of unsatisfied needs and
builds a motivation for purchase. Therefore, he starts gathering information and determines different
product criteria, ranking the products based irrational or rational thoughts. The stage of the proposition
selection where the consumer assesses, which product fits best for his needs, results in a purchase. It can
be differentiated between a routine purchase and a specialized purchase, where the consumer is more
involved in the decision-making process. The phase of re-evaluation follows where the consumer re-
organizes his beliefs, attitudes, opinions, or values to make sure of a right decision (Baines, 2011, pp.
81). The consumer checks the benefits against the costs. This is called cognitive dissonance, where the
information conflicts with the desired outcome. Therefore, it is important for the marketer to minimize
the cognitive dissonance and meet consumer needs (Picktin, Broderick, 2004, p. 82).

2.2.1.4 Influence factors on the E-car Purchasing Decision Process

The consumer’s needs can arise either through habit or through a process of choosing a brand, which is
called ‘picking process’. The ‘picking process’ is a selection of a product or service from a broad
repertoire of alternatives. During this process the consumer is influenced by intrinsic evaluation, which
can be divided into liking or disliking. Other influence factors could result from extrinsic evaluation like
economical, technical, social, legalistic or adaptive reasons. This study will focus on the intrinsic factors
of the consumer because these can be influenced by a marketer through a successful marketing
communications strategy. According to the cognitive model of consumer buying behaviour described
earlier, opinions are built on a cognitive level, attitudes are built on the affective level and values are
linked with the conative process (Baines, 2011, pp. 81). The consumer’s opinion and attitude will be
discussed in the following. How the consumer will develop value in relation to a brand will be
considered in the theory part ‘The measurement framework of brand equity-the ValueDrivers model’.

15
2.2.1.4.1 Consumer Opinion leads to Consumer Attitude
The consumer’s opinion building about a product or service can be a salient, intrinsic process or result
in an overt expression. Opinions, which are not expressed are often more important for the consumer.
The opinion is mostly influenced externally and is built on a cognitive level where just a small number
of facts can be kept in mind as the basis for a judgement (Blythe, 2013, p. 158). The consumer’s attitude
is built on the basis of his opinion and behaviour. The long-term condition of attitude describes the
feelings of a consumer for an objective attitude. The behaviour is an unpredictable condition in the
future, which does not inevitably result in an action. The cognition is the subjective knowledge, which a
consumer has from objective attitude. This is analysed with the ABC model, which describes the
interaction between knowledge, emotion and action. After evaluating the product information, the
consumer develops an emotion about the product. A positive emotion results in the consumption of the
product (Solomon, 2013, p. 253). There are different levels of consumer attitudes, whereby the level of
involvement is described as ‘internalisation’ (Solomon, 2013, p. 253). The electronic car, for example,
is a high-involvement product because of the high price and the long durability (Bruhn, 2004, p. 1929).
Influencing consumer’s attitude at this level is very difficult because the purchase is highly important
for the consumer. The attitude is strongly connected with the values of the consumer. The marketer has
to minimise the consumer’s dissonance by positively influencing his opinions and emotions. The
consumer looks for a reinforcement of his purchasing action in his environment or focuses on his own
previous buying behaviour. Therefore, it is important to support the consumer purchase decision also
after the consumption (Solomon, 2013, p. 253). A positive purchase experience is likely to lead to
further purchases and brand commitment. The stage of post-purchase represents the stage of a future
purchase cycle in the communication process (Wijaya, 2011, p. 77). With the Rosenberg model, the
consumer’s attitude can be measured. According to the model, the consumer’s attitude towards an object
represents the degree and direction of the attitudinal effect arisen by the object. The attitude is built on
two main components: the perceived instrumentality and the value importance. The perceived
instrumentality is the subjective capacity of the object to attain the value in relation to usefulness. The
value importance is what the consumer hopes to reach through the purchase and use of a product or
service. These two components are useful to predict the consumer’s behaviour (Blythe, 2013, p. 160).

2.2.1.4.2 Rational and emotional driven Purchasing Process of an E-car

Considering the purchasing process of an E-car, the consumer makes his decisions based on rational and
emotional motives. The consumer’s rational behaviour is influenced by the physical consumer
performance and availability of a product. In contrast, his emotional behaviour describes a buying
decision dependent on social and psychological influences. Rainey argues that successful green brands
use essentially emotional appeals to engage consumers (Rainey, 2010). According to a broad argument
by marketing experts, emotional messages and relationship building can have a high impact on the
purchase decision of consumers (Heath, Feldwick, 2008, p. 4). In contrast, Fill added that emotion can
also be used to provide information but the overriding approach is informational. However, in due
consideration of the affective component, Fill pointed out that rational information is not enough to
stimulate behaviour especially when a brand has a negative image. Emotional appeal can change the
consumer’s mind. Unique and creative messages appealing to several senses achieve high awareness.
For example, the government mostly uses informational campaigns to change people’s attitude in
behaving in a more environmental-friendly way. The effectiveness of the message can be reinforced
through dramatising the consequences of a particular behaviour to raise awareness. In Kotler’s opinion,
the company can also use negative emotional appeal such as fear or shame to influence people
positively in their behaviour (Kotler et al., 2008, p. 703). In consideration of the E-car purchasing
process, the consumer has a strong requirement to identify with the E-car brand. The goal of BMW, for
example, is to create a long-term, lasting and emotional identification and commitment with the brand.
16
Therefore, the E-car producer has to put in a lot of effort in the consumer loyalty programme to create a
strong green brand commitment (Bruhn, 2004, p. 1929).

2.2.2 Branding Strategy in the German E-car industry

To analyse how to brand an E-car successfully in the German car industry, theory and actual study
results will be considered.

2.2.2.1 Definition of a Brand

Branding is a primary function of advertising through which a company tries to reach its target
audience. A brand can also be defined as the value in the mind of the consumer. It is also the output of
marketing communication activities, which has to be managed throughout the brand life cycle.
Moreover, a brand is a set of attributes that have a meaning to the consumer and create associations with
the product or service (Picktin, Broderick, 2004, p, 250). According to Aaker, a brand is a name or a
symbol to identify or differentiate goods or services from competitor brands (Aaker, 1991). For De
Chernatony and Mc Donald, a brand is an identifiable product, service, person or place from which the
consumer perceives relevant added value, meeting his needs to create a long-term competitive
advantage (De Chernatony, Mc Donald, 1989, p. 83). The different definitions combine the fact that a
brand identifies a product and is, therefore, timesaving and facilitates the decision-making process from
a consumer perspective. The consumer trusts a brand because it ensures a specific level of quality and
satisfaction. From a brand-owner’s perspective, branding can be a powerful defence strategy against
competitors. However, it can also increase profit margins through premium pricing or reduce the threat
of price war when a company gains brand loyalty (Picktin, Broderick, 2004, p, 252). According to the
structure of Aaker (1996), a brand is built on different layers like an onion, starting with the core brand,
building of the brand’s mission and the consumer’s benefits. The next layer of the brand is the brand
value, which describes the brand and its message. The final layer is building of the value facets, which
support the operationalization of the brand value. This holistic concept is the driving force for the brand
world of the BMW Group (Bruhn, 2004. p. 1942). The BMW Group positions its new E-car brand
BMWi under the corporate brand umbrella BMW. In the automobile industry, from a consumer’s
perspective, a brand is especially perceived through products, communication and personal contact with
the retailer. A corporate brand is built on personality, identity and image and is described as the soul,
spirit and culture of an organisation (Picktin, Broderick, 2004, p, 245). It describes how the consumer
should perceive and differentiate the brand under competition through its uniqueness (Bruhn, 2004. p.
1942).

2.2.2.2 Consumer-based perspective on Brand Equity

Aaker defines brand equity as a set of five categories of brand assets and liabilities linked to a brand,
which provides value for the target group. The five sets of a brand asset are: brand loyalty, brand
awareness, perceived quality, brand associations and other proprietary assets like patents, trademarks
and distribution relationships (Aaker, 2006, pp. 194).

17
Figure 4: Aaker’s Brand Equity Model

Source: David A. Aaker, 2006.

From a consumer’s perspective, a brand achieves equity when people are familiar with the brand, having
positive and strong associations. Brand equity consists of two forms of brand-related knowledge: brand
perception and brand image (Shimp, 2007, p. 36). To manage and control brand equity, the E-car
producer BMW has to understand how the consumer perceives the brand and what are its strengths or
weaknesses. Therefore, the marketer BMW has to analyse the brand perception and how the brand is
perceived in comparison to the competitors (Bruhn, 2004, p. 1945).

2.2.2.2.1 Brand Perception

An important component of branding is the consumer’s perception. The marketer’s goal is to achieve
the most favourable perception possible through a strong brand personality. The target group should
connect specific characteristics with a brand, which trigger positive stimuli to create an overall strong
brand image (Blythe, 2013, p. 109). The consumer’s perception is a process of individual selection,
organisation and interpretation of several stimuli into a meaningful impression. The process is based on
persons’ needs, values and expectations and is, therefore, highly individual   (Schiffman et al., 2008,
p.168). Perception occurs when a brand name comes to the consumer’s mind, thinking about particular
associations with a brand. Brand perception is the basic element of brand equity. If the consumer is not
aware of a brand, a brand cannot have equity. The ‘Managing brand equity’ model (figure 5) of Aaker
shows the different levels of perception which the consumer experiences, beginning with the stage of
unawareness and ending with the ‘Top of mind’, which is the target stage of each established brand. The
pyramid visualises two stages of awareness: brand recognition and recall. Brand recognition reflects a

18
relatively superficial level of awareness whereas at the stage of brand recall a deeper level of awareness
is achieved. The stage of unawareness can be equated with the failure of a brand (Shimp, 2007, p. 38).

Figure 5: Managing Brand Equity

Source: David A. Aaker, 1991.

The attitudes and behaviour of the staff of a company are, for example, main brand builders and a strong
marketing communication tool, which transmit the corporate culture to the public. Therefore,
inconsistency between staff behaviour and the companies’ culture has to be avoided. A difference
between consumers’ expectations and perception can lead to dissatisfaction and negative effects on the
brand image (Picktin, Broderick, 2004, p. 258).

2.2.2.2.2 Brand Image

The sum of all characteristics of a brand tries to profile the corporate personality. In turn, the corporate
personality transmits the corporate identity, which is everything how a company is known and
understood as. The perception of the companies’ target audience, which is created from the corporate
identity is named corporate image. All marketing communication activities of the company help to build
the corporate image through the consumers’ feelings, which become associated with thoughts. To ensure
a desired and representative brand image, the brand has to be managed (Picktin, Broderick, 2004, p,
245). The brand image builds the second dimension of the brand knowledge, which is described earlier.
Shimp describes the brand image as associations, which activate the memory, building positive links
with the brand. All consumer thoughts and feelings are types of these associations. A high level of brand
equity is reached if the consumer associates the brand with different benefits, resulting in a positive
brand evaluation (Shimp, 2007, p. 39).

2.2.2.3 The ValueDrivers model

To measure the brand equity, the ValueDrivers model (figure 6), which maximises the financial value of
brands is considered. Value drivers are different components to help increase the value of a brand. One
key goal of this measurement framework is to deliver a meaningful brand experience to the consumer
and maximize this moment. The framework regards two key issues influencing the brand management
nowadays. On the one side, the market of consumer needs has become more complex and is fast
changing. Therefore, the marketer has to focus on his communication, distribution and pricing activities
to ensure a clear and unique brand profile. On the other side, go-to-market options have increased

19
heavily over the last few years through the transparency of Internet which is not time or space bound.
The pressure of being innovative and reacting in real time to market changes has increased immensely.

Figure 6: The ValueDrivers model

Source: Hollis, N., 2013.

In the first stage, the ValueDrivers model considers the definition of meaningful, differentiated brand
experience, which can lead to price premium positioning or achieve a higher turnover. To create such an
experience, the marketer has to be clear about the purpose of the brand, which should be significant and
different from competitors. The most effective way to generate differentiation is to achieve resonance on
an intrinsic level of consumer behaviour, encouraging all senses to create linked thoughts with the
brand. In the best case, the marketer generates consumer awareness at an emotional and rational level.
The consumer’s emotionality is most valuable. If the consumer creates a strong identification with the
brand, this brings a significant added value to the consumer. Differentiation can also occur at an
extrinsic level based on the feelings, which are developed during the brand and product experience. For
example, social and environmental corporate responsibility can form extrinsic differentiation or a unique
product design which the brand BMWi fulfils. The marketer has to address real consumer needs for a
price that the customer is willing to pay through a clear marketing message delivery. In the second
stage, the model focuses on the reinforcement of this experience in the context of a more widespread
audience. According to the ValueDrivers model, findability, credibility, vitality, affordability and
extendibility can amplify the meaningful difference of a brand. Findability means physical availability,
which requires a well-managed distribution network. The product or service needs to be visible and
should be easily identifiable for the target group. Optimized credibility can be achieved through
consistent brand communication. A new product line like the BMW E-car series should be properly
adjusted to the parent brand BMW concept, building unity. A brand can be perceived as vital if the
brand is perceived in relation to activity and innovation. Social media is a good tool to manage creative
and innovative marketing campaigns. Price management is also an important factor for adding value to a
brand. The product or service has to be affordable and match the price the consumer is willing to pay.
Moreover, extending the brand is a successful ValueDriver for growing brand value to cover new
market segments. In the final and third stage of the model, a brand can generate value through four
different ways. The marketer can extend the brand to gain a new consumer segment in the same product
category or reach new geographical markets. The marketer could also create a premium-pricing concept
20
or focus on high turnover. All these ValueDrivers lead to a long-lasting brand value growth (Hollis,
Pincott, 2013).

2.2.3 A Green Branding approach in relation to the German E-car industry

The result of this paper should provide important information for the E-car industry about how to
market a green product. Therefore, the Green Branding theory will be examined in relation to the
German E-car industry.

2.2.3.1 Definition of Green Branding

The Green Marketing approach is focused more on ecological issues than social and economic issues
compared to the classic marketing approach (Emery, 2012, p.17). Fill argues that a green brand has to
fulfil three strategic goals: differentiation, integration and added value to create strong, positive and
lasting impressions (Fill, 2013, p. 11). A green brand is built according to the principles of sustainability
and environmental friendliness, targeting a consumer group, which is willing to pay for these ethical
brand values. The consequences of the financial crash and the Euro crises led people to think more
about having enough money to drive a car than acting in an environmental-friendly way. When
consumers are highly price-sensitive, companies have to provide low prices or real value. Ethical or
green brands can create this value and can thus justify higher prices (Arnold, 2009, p. 70). According to
Grant, 8 to 10% of people are classified as having a dark green lifestyle, 20 to 40% of people are up for
light green changes and still 60 to 80% of people are not concerned about the environment (Arnold,
2009, p. 70). John Grant, the author of ‘The Green Marketing Manifesto’, questions: ‘Why can’t you
just ‘green’ a conventional brand?’ The issue is that ‘green’ is not a simple image; it is more a factual
and sceptical evaluation of a brand or a product (Arnold, 2009, p. 70). According to Holbrook, Lehman
and O’Shaughnessy, a consumer has an intrinsic and extrinsic evaluation. The internal perspective is not
only determined by thoughts or personality structures, it is also influenced by the opinion of people we
trust (Baines, Fill, Page, 2011, p. 230).

2.2.3.2 Danger of Green Washing

Communication experts from the marketing consultancy OgilvyEarth published important Green
Branding rules in 2009. Companies try to use green claims to improve the brand image, which is named
‘Green Washing’ (Williams, 2010). Green Washing is a misleading marketing claim by a company to
conceal its abuse of the environment and present a positive image (Emery, 2012, p. 223). But Arnold
argues that branding is not just about the image; it’s about how the brand is perceived from the
consumer perspective (Arnold, 2009, p. 44). Further reports of the OgilvyEarth showed that 64% of
Americans no longer trust sustainability-related marketing claims. The OgilvyEarth adviser, Ma Jun,
announced that more and more local and multinational companies have to handle Green Wash violations
from the public. Therefore, companies have to build high credibility for sustainability-related marketing.
A survey identified a strong consumer movement to support green products (Williams, 2010). In 2009,
Time magazine published that 38% of consumers over 18 years try to buy products from socially
responsible companies. The change in public awareness shows a revolution of responsibility (Stengel,
2009). The United Nations Framework Convention on Climate Change in 2009 confirmed that a global
citizen-consumer revolution developed to support sustainable future. The OgilvyEarth adviser, Jeunesse
Park, identifies the authenticity of the company’s brand image as crucial. A further challenge for
consumers is to understand the green health claims, according to adviser Andrew Winston. Green Wash
claims can damage the company’s reputation, if consumers doubt the company’s developments
(Williams, 2010). John Grant agrees that consumers do not trust companies, which make profit by green

21
taglines (Grant, 2008, p. 25). Negative clichés about eco products in consumers’ minds have to be
removed (Williams, 2010).

2.2.3.3 Marketing Communications of a Green Brand

Arnold describes the problem saying that people have got immune to environmental claims. They realise
the rising problem of the environmental conditions, but they do not feel personally responsible. The
sense of security is not touched. Thus, there is a missing link between the stage of ‘think’ and ‘feel’ of
the Hierarchy of Effects model. But the consumer behaviour can be changed if the company can make
people feel and act (Arnold, 2009, p. 70). In relation to Green Marketing approach, consumers who do
not feel responsible for the environment have to be convinced to buy an electronic car. The ecological
aspect is one of several reasons to buy an E-car. People have to be convinced of the idea of making a
significant change through the purchase, influencing the total impact (Grant, 2008, p. 25-27).
A successful way to create green brand perception is the communication of a negative issue followed
by the solution providing the brand. In respect of electronic cars, the negative effect of pollution can be
explained followed by the solution of the electronic car. This approach is highly credible because it
reduces reporting bias and sceptical opinions (Soloman, 2013, p. 293). In Arnold’s opinion, consumers
are not even able to understand a marketing message because they are too confusing and complicated
creating uncertainty. In consequence, the personal involvement is low and the consumer cannot develop
feelings, which results in not purchasing the product. Companies which communicate a clear and easily
understandable marketing message can change people’s mind and, therefore, also the action of purchase
process (Arnold, 2009, p.70). Ian Higgins agrees that environmental claims should be factual, specific
and clear. According to the experts at OgilvyEarth, the environmental marketing message should be
honest and tell the truth for creating authenticity and credibility. For providing true content, details
should be explained in the integrated marketing strategy. Especially, content generalization and broad
taglines should be avoided (Williams, 2010). Interbrand, the global leading brand consultancy and
founder of the annual Best Global Brand Reports, analyses green brands of 2013. According to this
study, green brands, which communicated transparent and clear message, could achieve more value in
public. Also, the selection of appropriate media channels is important to reach the right target group at
the right time and place, which is interested in the marketing message. The green marketing message
should be aligned with the company’s performance to convince the consumer of its trustworthiness and
brand honesty (Baines, Fill, Page, 2011, pp. 230).

2.2.3.4 Green Brand building of German E-car producers

The BMW is ranked as one of the top twenty sustainable brands in Germany. It was observed that
automobile brands, which invested in the R&D sector and implemented sustainability in the corporate
strategy, could achieve more value in customer perception. New product design and the use of light and
sustainable materials can underline the environmental-friendly image. Technological E-car
manufacturer brands have to especially optimise environmental-friendly performance and efficiency
throughout the value chain (Pietig, 2013). A brand should look ethical as well as give the feeling of
ethos (Arnold, 2009, p. 9). Leaving behind the mass and fast consuming generation, society’s buying
behaviour seems to be turning back to old basic values. Brands, which do not adapt to the environmental
changes and ethical performance, will fail (Arnold, 2009, p. 33). There is a significant gap between
being profitable or profiteering. Trying to be a brand with a big ego and being the loudest and most
profitable brand do not always establish good consumer perception. The brand is a reflection of personal
contact with the stuff. Consumers want to be treated more as special and valued like a friend. Being
number one does not mean consumer satisfaction or better service. Consumers could also perceive a top
brand as greedy and arrogant. In this case, the target audience will not pay for overpriced products if
they do not sympathise with the brand, losing respect and reputation. To avoid this negative green brand
22
image, the big players need to build up an ethical brand, treating the consumers and the environment
with respect (Arnold, 2009, p. 9).

2.3 Contextual Review

2.3.1 German E-car industry
The German E-car industry will be considered to research about the evolution of the E-car sector and the
consumer behaviour in this sector.

2.3.1.1 Evolution and Future Outlook of the German E-car industry

The German automobile industry is especially a very attractive market with a high growth potential in
the future. In 2012, 128.2 bn Euro of total sales were generated in the German automobile sector
(Statista, no date). Behind Japan, China and the USA, Germany is the fourth largest automobile
producing nation (BWT, 2013). Over the last few years, the innovative E-car has penetrated more and
more into the German car industry. On the one hand, some economical studies show clearly that the E-
car is the future transport vehicle. Roland Berger predicts that 37% of cars will be E-cars in the
European automobile market by 2025. McKinsey said that in 2030, two out of three cars will have an
electric motor. According to the electro mobility index of McKinsey, which measures the successful
implementation of E-cars, Germany is better placed than China for the first time (Bayme vbm, 2012, p.
15). A scientific study of the Böckler institution also supports the future development of E-cars,
predicting an increasing sale of about 15% by 2030, which is low compared to hybrid cars which will
increase by about 35% by 2030. In contrast, combustion engine cars will decrease by about 40% (Prof.
Dr. Ing. Spath et al., 2012, p. 18). The main increase of E-cars is predicted between 2020 and 2030 and
visualized in Figure 7.

Figure 7: Evolution of Demand of E-cars

Engine$car$
Engine$cars$ Full$Hybrid$
Suppor/ve$Hybrid$
Suppor/ve$Hybrid$ Electonic$Car$
Ele$
Electronic$car$

Source: Prof. Dr Ing. Spath et al., 2012.

23
2.3.1.2 Reasons for the actual low Consumer Demand of E-cars in Germany
After proving the increasing demand of E-cars on a long term, it is even more surprisingly that demand
today is mildly growing, which is visualized (FOM, 2010, p. 72). Te study of NPW is visualized that the
demand of E-cars in Germany increases slowly, which is explained through low market capacity and
low supply (figure 8). In January 2014, just 12,156 electro vehicles were registered by the German
Federal Office for Motor Traffic. McKinsey presents every three months an Electric Vehicle Index. In
international comparison, the demand for E-cars is even slightly decreasing in Germany. McKinsey
predicts 0,7% share of E-cars on the German car market in 2017, which is a slightly decreasing value in
comparison with the last results of the Electric Vehicle Index (Elektroauto, no date).

Figure Evolution
8: Development of Demand
of demand of E-cars
in E cars till 2020
in Germany
1200000"
Phase&1:& Phase&2:& Phase&3:&
2011+2014& 2015+2017& 2018+2020&
1000000" " " "
)  Market" )  Market" )  Start"of"mass"
prepara1on" increase" market"
800000" )  Low"Market" )  Higher"Market" )  High"Market"
capacity" capacity" capacity"
)  Low"supply" )  Higher"supply" )  High"supply"
600000" " " "
"" "" ""

400000"

200000"

0"
2010" 2014" 2017" 2020"
Early" Substainable" Mass"
Adopter" Market"Growth" Market"

Source: Adapted to a study of NPW, 2012.

In a study of the statistical institute FOM in Germany conducted in 2010, 763 participants were
surveyed (FOM, 2010, p. 72). It was proved that there are some product features of the E-car which
negatively influenced the consumers’ demand for E-cars. There was further proof that the consumers
perceived the E-car to be expensive compared to a motorcar (Study CarIT, 2012). A study of Aral in
2011 showed that 59% of the respondents are not willing to pay more for an E-car. The younger
consumer group especially under 40 is not just ready to pay 1.466 Euro more. This is an important fact
in contrast to the opinion of the car producers who think that the younger people are more willing to buy
an EV (Meyer, 2013, pp. 127). The marketing activities for E-cars should also focus more on the topic
of tax reductions and inform about cost advantages compared to motorcars. Moreover, the government
has to introduce subsidies, which make the EV more attractive. According to Bayme vbm, the subsidies
must be low to reach the planned governmental goal (Study CarIT, 2012). The most discussed
marketing topic in relation to E-cars is environment. However, the consumer needs to be informed first
about the important technological aspects to reduce uncertainty and a lack of information in relation to
E-cars (Study CarIT, 2012). Of the sample, 60% have difficulties with the less reach of an E-car
compared to a motorcar. Forty per cent of the respondents accept 5-30 min charging time of the E-car
and just 11% accept three to six-hour-long charging time. Fifty-five per cent of the respondents could
accept a 1-5 km distance to the next E-car charging station. It could be determined that the acceptance of
EVs rises when the EV is a second car in the household (FOM, 2010, pp. 72). A study proved that there is
a positive correlation between a well-informed consumer and the willingness to pay more for an E-car
(Backhaus et al. 2011, p. 85). Marketing expert Björn Sprung, the director of the international
24
Marketing agency ‘Nielsen’, underlines that the marketing strategy of German automobile companies
needs to focus more on sales arguments, which are important for the consumers. If marketing is targeted
in relation to consumer needs, the demand for E cars can be accelerated (Study CarIT, 2012). These
problems can be solved with the progress and innovation over time.

2.3.2 E-car Brand Strategy of BMW

2.3.2.1 Brand Strategy of BMW
The German automobile sector comprises multi-brand companies whereby the supply will be extended
through buying-in of different brands (Bruhn, 2004. p. 1929). A multi-branding strategy is defined as
the supply of multiple brands in the same product segment. Also, the BMW Group drives a cost-
orientated multi-branding strategy based on the future-driven overall corporate strategy ‘Number One’,
which is discussed in detail in the appendix A (Picktin, Broderick, 2004, p, 254). But it has to be
assessed that the most successful German car manufacturers like BMW, Hyundai, Peugeot, Porsche and
Toyota, focus on just few brands (GENIOS WirtschaftsWissen, 2004). On one side, the German car
producer uses a strong corporate brand whereby the company’s name is synonymous with the total
BMW product class and a strong brand portfolio, which is discussed in detail in the appendix F.
Corporate branding is used when a company operates in a tightly defined market like the automobile
sector, which brings advantage for the advertising of related products like the new BMWi series. The
strategy helps to avoid confusion and diversification during the purchasing process (Laforet, Saunder,
1994). On the other side, BMW uses house brands like MINI and Rollys Royce to cover different
market segments (Laforet, Saunder, 1994). The BMW Group wants to target especially a younger
consumer group with the MINI and the luxury segment with the Rollys Royce (BMW Group, no date).
The company tries consciously to differentiate the products of the three premium brands from each
other. The subsidiaries should operate independently from the parent brand, which allows focusing on
their own business. This can also bring promotional advantage by creating something new and providing
a more targeted advertisement (Laforet, Saunder, 1994). Looking at the brand BMW, it is observed that
the Group drives an umbrella branding strategy which is a management approach whereby the parent
brand name is used across a range of products, benefiting from the consistent and clear parent brand
identity (Millward Brown Knowledge Point, 2008). Umbrella branding and extending the brand lead to
a complex product portfolio, which is direction giving for all marketing activities and is quite
advantageous (Aaker and Keller, 1990). The consumer can perceive familiarity, credibility and
associations with the corporate brand when he buys one product from the product range. This effect is
called ‘halo effect’, which is not always guaranteed. A study by the Millward Brown Institution in 2008
found that around one quarter of advertising activities in relation to umbrella branding shows a
significant halo effect for products of the parent brand portfolio (Millward Brown Knowledge Point,
2008).

2.3.2.2 Goal of the Brand Strategy of the BMW Group

For the BMW Group it is important not to extend the brand portfolio too much to keep the brand
authenticity. The customer has to be given the possibility of individual identification but at the same
time the degree of standardisation has to be kept because of synergy effects. Each brand has a clearly
defined profile and a system of values so that a broad brand portfolio without any overlaps can be
provided (Bruhn, 2004. p. 1935). The brand BMW tries to differentiate from other brands to gain
competitive edge, which is challenging because in the premium car segment, the consumer has detailed
product knowledge through multi-channel media. The long-term marketing messages and values have
also to be adapted to the changes in society. The rational consumer behaviour is about price and the
emotional consumer behaviour is about the willingness to pay more for a premium product (Bruhn,
25
2004. p. 1935). The premium brands make business from the consumers’ emotionality, which the BMW
describes as the ‘joy of driving’. This results in a long-lasting consumer commitment (Bruhn, 2004. p.
1935). The BMW is the core brand, which stands for joy of driving, high quality and successful history
on the racecourse (Bruhn, 2004. p. 1935). Brands awareness is built in the mind of the consumer and
can influence his perception. The consumer’s subjective attitude about a brand is crucial for brand
success. Therefore, the marketing of the BMW is focused on the communication and strategy to increase
the brand value (Bruhn, 2004. p.1942). The BMW creates its brand portfolio according to the principle:
the more a brand is focused on a defined gratuitous promise the more marketing message can be
targeted to the consumer. The goal of the BMW’s branding strategy is to create consumer trust on an
emotional level and create a strong brand image, which is a long-term competitive advantage (Bruhn,
2004. p. 1929).

2.3.2.3 Communicated Brand Image in the Marketing Campaign of the brand BMWi
The BMW is a pioneer of managing a global, market-introducing campaign for E-cars, which will be
analysed in the following (MarketLine, 2013, p. 4). The new premium E-cars BMWi3 and the sports E-
car BMWi8 were introduced in November 2013 on the IAA, the biggest German automobile exhibition.
The integrated marketing strategy of the BMWi3 consists of a print, online and TV campaign. The main
goal of the campaign is to encourage a potential consumer for a driving experience to create a positive
emotion in relation to the product. The campaign has an international and consistent online presence
focusing on an innovative marketing movie. The campaign also includes activities in the area of social
media like the Facebook with configuration mode and the possibility to register for a driving experience
with the BMWi3. The BMWi-App is constructed with the same functions and a 360 angular degree
visualisation function (OnetoOne, 2013).
The German marketing manager, Frank Dophreide, CEO of a leading German marketing agency,
evaluated the BMW marketing strategy. The BMW has to successfully fulfil the gap between a modern
premium car and a new environmental-friendly concept. The electronic vehicle will be the car of the
future and needs to be sold to a large segment of the population in the future. Thus, it is important that
the BMW sold the new E-cars series like conventional cars. Clichés like electronic cars are just for
people supporting the eco-movement have to be prevented. The brand BMW symbolises dynamic
design and driving passion, which have to be combined in the new electronic car. The new sports E-car
model BMWi8 breaks the cliché of electronic cars with its features of a sports car. The model underlines
the revolution of electronic cars and thus it was a good strategy to present both the models at the same
time. The BMW marketing campaign for E-cars is conventionally designed. The public may expect a
revolutionary campaign and product presentation, which the BMW wants to avoid consciously. The
concept of the electronic car itself is revolution enough. The BMW’s marketing team thinks the more
spectacularly the car is launched, the higher will be the barriers for the consumer. The BMW wants to
promote that the electronic car be perceived as natural. The most important marketing tool and the
campaign’s main goal will be the personal driving experience. The consumer can feel the power and
experience the fun of driving. The consumer should be curious and get more familiarised with the car
(Steinkirchner, 2013). The German car industry can remain successful when it takes part in the
ecological revolution. The car should no longer be a status symbol; it has to be invented new (Heuser,
Lamparter, Pinzler, 2011).

2.4 Conclusion
The consumer behaviour theory discussed in the academic review explained how advertising works and
how the consumer can be effectively influenced. The study results in the field of branding from a
classical perspective and from a green marketing perspective providing important information on how to
brand a green product like the E-car and what has to be avoided. The contextual review proved that the
26
demand of E-cars is at the moment growing slowly. Additional, the branding strategy of BMW was
analysed to explain the goal of BMW, how to brand its new E-car series. The discussed literature review
helps to reach the goal of this study, providing significant information on how to improve the marketing
strategy of German E-car manufacturers.

3. Research Methodology and Methods

3.1 Introduction
The researcher follows a specific research strategy to provide reliable data and research knowledge for
adding value to this research field. Research philosophy is a system of belief that guides the study in
relation to techniques and different research process approaches. The researcher has to decide, which
methods he wants to choose as part of the research strategy influencing the academic study significantly.
A helpful instrument is the research onion, which gives an overview of the multiple decision-making
steps the researcher can choose and adapt to his topic and purpose. Decisions will be made in relation to
different approaches, strategies, choices, time horizons and techniques (Saunders, Lewis, Thornwill,
2007, p. 106). Johnson and Clark argue that it is not so important how much the study will be
philosophically informed. But, it is important to reflect upon the philosophical choices and defences in
relation to the alternative decisions the researcher could have made (Johnson and Clark, 2006, p. 103).

3.2 Overall Quantitative Research Objectives

In this investigation the overall quantitative research question is:

What is the reason for low consumer demand for E-cars in Germany and how can these issues be
positively influenced from a marketing point of view?

It is proved that the demand of E-cars is growing slowly, which is discussed in ‘2.2.1 The German E-car
industry’. The detailed analysis of the reasons will be provided through a quantitative survey. After
analysing the reasons, an adapted and problem-solving marketing strategy will be elaborated in due
consideration of consumer behaviour, branding strategy and green branding theory, which were
discussed in the literature review. The dissertation will evaluate critically the observations of experts in
these fields to work out significant new content as to how to market E-cars in Germany sucessfully. The
proposed study will survey potential E-car buyers in Germany to figure out consumer perceptions and
attitude of German E-cars brand manufacturers. As a result, recommendations for future marketing
strategies for E-cars will be provided, which will influence the consumer buying behaviour positively.

3.3 Positivism
In this academic study, the positivism research approach is chosen and used in general by natural
scientists. Positivism is a natural theoretical approach that assumes that the findings are based on
positive facts rather than on impressions. Everything, which is not observable and cannot be proved
through scientific experiment or ethical and theological questioning is against the positivism approach.
From the observed part of society, which will be surveyed during the research process, a generalisation
of the whole society can be made. The research strategy of collecting data should be built on existing
theory. This was discussed in the previous literature review to develop the research hypothesis, which
will be proved or refuted. If the hypotheses are refuted, further theory has to be tested. Moreover, the
positivism approach assumes an on-going scientific progress and a value-free attitude of the researcher.
For the researcher, it is a challenge to stay value free because of the developing feelings during the
research process in relation to personal opinions or empathy with people who were surveyed for sample.

27
Moreover, the researcher is independent of the research subject and in turn he also does not influence
the research subject (Saunders, Lewis, Thornwill, 2007, p. 105).

3.4 Deductive Method

In the second research development stage, the deductive approach is chosen. According to this
approach, a theory and hypothesis will be developed, followed by designing a research strategy to test
the hypothesis. The hypothesis should clarify testable proposition about the relationship between several
concepts (Saunders, Lewis, Thornwill, 2007, p. 105). The deductive approach is chosen due to the
planned quantitative survey, which will indirectly measure the reasons for a low demand of E-cars in
Germany. It is assumed that reasons for the lack of consumer demand are related to each other. The
indirect measurement will be done by several variables and when combined they become a construct,
which will be described later. Variables are the observable and measurable characteristics in a
conceptual map and are directly linked to observable facts. Variables can also be distinguished between
an independent variable, which is a measureable characteristic and a dependent variable, which is
influenced by the independent variable. Thus, the independent variable gives the reason for the
dependant variable (Hair, et al., 2007, p. 144).

3.5 Hypotheses
The hypotheses will be derived from the discussed academic theory in the literature review and divided
into the fields of consumer behaviour, branding strategy and green branding strategy. In the field of
consumer behaviour, the Hierarchy of Effects model was discussed, which describes three dimensions
of the E-car purchasing process. In the first cognitive dimension, the consumer’s perception is formed
from the product knowledge. This leads to the development of needs, which the consumer wants to
satisfy. The consumer’s attitude is built on the second affective dimension. On this level, the consumer
develops a liking or disliking for the product. In the third conative stage of purchase, the consumer is
convinced to purchase, influenced by his personal values. According to these three stages, the
hypotheses are generated to determine at which stage of purchase the potential E-car consumer has a
problem, which leads to a non-purchase of an E-car. To make analyses possible, a known E-car brand
BMWi and its marketing activities are chosen, representative of an example of a German E-car brand.
The hypotheses will be tested to clarify why the demand of E-cars is low and what are the reasons.

Hypothesis 1:

The consumer’s perception of the brand BMWi is low.

The literature review discussed, that product information, brand personality and associations influence
the brand perception. Therefore, the following construct and hypothesis were deduced.

Construct 1: Consumer’s perception of German E-car brand manufacturers

Rational Identifying strengths and weaknesses of the BMWi brand

Dependent variable Consumer’s brand perception of BMWi

Independent Product information, brand personality, brand associations

variable

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Hypothesis 2:

The consumer’s attitude of German E-car brand manufacturers is positive.

In the literature review, it was discussed that the consumer’s attitude is measured by the Rosenberg
model through two components: the perceived instrumentality and the value in relation to usefulness
which the consumer hopes to enjoy through the purchase.

Construct 2: Consumer’s attitude of German E-car brand manufacturers

Rational Identifying strengths and weaknesses of the BMWi brand

Dependent variable Consumer’s brand attitude of BMWi

Independent Consumer’s perceived instrumentality of the E-car, consumer’s perceived value in

variable relation to usefulness of the E-car

Hypothesis 3:
The marketing activities of the BMWi brand are not trustworthy enough.

According to marketing expert Frank Dophreide, the German E-car industry has to fulfil the gap
between a traditional car manufacturer brand and an eco-product brand, which are in contrast to each
other. The traditional car brand is more likely to be seen as not being environmental-friendly and
specialised in racing engines; in contrast a green E-car brand which is more likely to be perceived as
specialised in environmental-friendly engines and less focused on speed and design (Steinkirchner,
2013). Therefore, it will be investigated if an E-car brand, like BMWi, should be marketed under the
umbrella of the traditional engine car brand BMW.

Construct 3: Consumer’s trust in the German E-car brand manufacturers

Rational Identifying strengths and weaknesses of the BMWi brand

Dependent variable Consumer’s trust in the brand BMWi

Independent Purpose of the BMWi marketing campaign, trust in the expertise of BMW
variable

29
Hypothesis 4

The brand equity of BMWi is not strong enough.

In the literature review, the ValueDrivers model, which measures the brand equity, was discussed in
chapter ‘2.2.2.3 The ValueDrivers model’. The model analyses how meaningful a brand experience is
for a widespread target audience and the degree of differentiation of a brand from its competitors.
Differentiation can be achieved through intrinsic or extrinsic variables, which influence the consumer
behaviour.

Construct 4: The brand equity of German E-car brand manufacturers

Rational Identifying strengths and weaknesses of the BMWi brand

Dependent variable Reinforcement of a meaningful and different brand experience

Independent Consumer’s identification with the brand, intrinsic emotion building in relation to
variable associations, extrinsic emotion building during brand experience or for product
design

3.6 Survey
Suitable to the deductive approach, a quantitative, descriptive survey research technique is proposed to
generate representative findings for the entire population according to a mono method. Moreover, the
survey is time-bound because the researcher has only 12 weeks to write the academic paper and,
therefore, a self-conducted paper-based questionnaire method is chosen. A self conducted, paper-based
questionnaire will provide several questions, which will help to answer the research question and test
the hypotheses (Hair, et al., 2007, p. 155). Using standardized data is a good basis for comparisons to
explain relationship between variables (Saunders, Lewis, Thornwill, 2007, p. 135). For each hypothesis,
several questions will be asked to ensure the proper testing of the hypotheses. The survey will generate
data on how potential consumers perceive German E-car brands at a particular point of time (Saunders,
Lewis, Thornwill, 2007, p. 148). The advantage of a personal conducted survey is that
misunderstandings of questions can be removed through explanations and people will not answer
questions wrong or skip questions. The E-car is a new innovative product and thus it could be that
respondents do not have enough knowledge to answer the survey questions. A further advantage is that
the survey will be conducted as long as one hundred responses are generated, thus having control over
the survey (Saunders, Lewis, Thornwill, 2007, pp. 361).

3.7 Non-Probability Sampling

The non-probability sampling method is used if a complete suitable sampling frame is not available and
if it is not possible to specify the probability that any case will be included in the sample. A sampling
frame is a complete list of all cases in the population from which the sample is built. In this
investigation, there is no access to such a sampling frame as well as the probability of each case being
selected from the population is not known, which justifies the use of the non-probability samples
method. Through the non-probability sampling technique, samples based on subjective judgement can

30
be selected. To answer the research question, a small sample will be surveyed to gain theoretical insight
(Saunders, Lewis, Thornwill, 2007, p. 226).

3.8 Quota Sampling

In the next step, it has to be decided which sampling method will be used in this investigation. The data
from the entire population cannot be collected and there is no need to make statistical interferences from
the sample. According to the previously described conditions, the quota sampling is a suitable non-
random method to divide the populations into specific groups according to quota variables, which
represents the entire population. The concept can be conducted under the premise that the variability in
the sample for different quota variables is the same as for the population (Saunders, Lewis, Thornwill,
2007, p. 227). Therefore, a common set of characteristics has to be selected to represent the entire
population. Thus all elements in the sample must share the same characteristics. A quota will be
calculated for each group based on relevant and accessible data (Hair, et al., 2007, p. 170). The
interviewer needs to conduct the targeted survey and needs to control the composition of the sample to
fulfil the criteria of a representative sample. One hundred responses are calculated as sufficient to
generate the calculated number of answers needed for each quota group for statistical analyses. The
advantages of this technique are low costs and quick conduct (Saunders, Lewis, Thornwill, 2007, p.
236).

3.9 Sample and Quota groups

The sample unit is used to estimate the characteristics of the German inhabitants, who could be potential
future E-car purchasers (Hair, et al., 2007, p. 170). One hundred respondents will be surveyed to analyse
the consumer behaviour and to provide information of consumer’s perception of E-car brands. The
sample was first divided into a user group and a non-user group of over 18 years because people who
have driving licence are classified as potential E-car users. Moreover, it can be specifically analysed
why the non-users are not convinced to purchase an E-car. The user group can be analysed based on
why they are convinced and what are the advantages of the E-car. However, the following calculation
shows that a quota for user and non-user is not representative of the entire population because the
percentage of the usage is almost zero (table 1). The proportional relation between user and non-user is
too big to be representative for the entire population and thus a scientific analysis of E-car users is not
possible.

Table 1: User and Non User quota

As a solution, the quota was newly defined as a user group over 18, divided into male (32.377) and
female (34.293) making up a population of 66.670 over 18 years according to Bpb (2013). Analysing
different gender groups can give new insights about the preferences of the different quota groups. The

31
male and female target groups can be targeted with marketing messages according to their needs.
According to the previous quota calculation, the German population can be seen as non E-car users and
thus both quota groups can be seen as non-E-car users. According to the calculation, 49 male
respondents have to be surveyed and 51 female respondents have to be selected to have a representative
sample of the German population (table 2).

Table 2 : Male and femal quota

3.9 Quantitative data collection and sampling tool

There are two ways of data collection. On the one side, the qualitative data collection is concerned with
generating non-numerical data through interviews. On the other side, the quantitative data collection
generates numerical data through questionnaires and is suitable if a high amount of data from a large
sample group has to be collected as in this investigation. As a sampling tool, a quantitative self-
completion, paper-based survey will be conducted to analyse the consumer’s perception in relation to
German E-car brands as well as the consumer behaviour. To ensure the response of one hundred people
and having influence on the quota distribution, the survey will be handed out at an electronic car
exhibition (appendix B) (Elektroautonews, no date). The self-completion questionnaires will be used to
collect the primary data on a location where the possibility to meet people who have the motivation to
answer the questionnaire (Hair, et al., 2007, p. 203). The data of the completed questionnaires will then
be transferred to the survey software ‘surveymonkey’, which will automatically transform the results
into statistical charts and reports. The service will be used for one month, which costs 25 Euro
(surveymonkey, 2013). It is the responsibility of the researcher to ensure the validation of the
questionnaire (Hair, et al., 2007, p. 203).

3.10 Data Analysing

For analysing the generated data of the survey, categorical data will be used, which values cannot be
measured numerically but can be classified into categories. Partly the data can be classified into more
than two sets, which can be ranked. Descriptive data count the number of occurrences in each category
of a variable to identify, which category has the most cases and allocation of the cases (Saunders, Lewis,
Thornwill, 2007, p. 408). For valuable analyses the software tool surveymonkey and excel were used,
visualizing the research findings in form of diagrams and tables to identify interdependences and
compare proportions, trends and conjunctions. During the analyses process, it will be focused on the
data distribution, specific values and highest or lowest values (Saunders, Lewis, Thornwill, 2007, pp.
423).

3.11 Methodology Plan

3.11.1 Limitations
Through handing out a self-administered questionnaire, a quantitative analysis is possible through
collecting the answers of each person who have to respond to the same set of questions. The researcher
32
has to ensure that he creates a specific and clear questionnaire, which will answer the research question.
The researcher has to be clear about not having the possibility of going back to the respondents because
the survey is anonymous and conducted just once. If the researcher hands out the questionnaires in
person, he can be sure that he reaches the right respondents who will complete the questionnaire
personally without any external influences and, therefore, the generation of reliable data is ensured
(Saunders, Lewis, Thornwill, 2007, p. 361). The researcher can also ask if the respondent knows what
an E-car is or if he knows the brand BMWi, which is a premise to answer the questionnaire. The
researcher can explain everything the respondent has to know to answer the questionnaire. There is, for
example, the possibility that a significantly higher number of male respondents than female respondents
will visit the exhibition where the survey will be conducted because of the technical topic. This would
then be difficult because the required percentage have to complete the questionnaire to achieve the quota
(Hewson et al. 2003). The finding results are expected to answer the hypothesized relationships and
provide value for the existing theory. If the hypotheses cannot be proved, the researcher has to go back
to theory to reformulate the hypotheses, which also needs to be considered in the time planning (Hair, et
al., 2007, p. 42). The researcher aims to analyse the consumer behaviour of the German population in
relation to E-cars. Therefore, it is reasonable to survey only German consumers. So the questionnaire
will be provided in German language to avoid language issues (Saunders, Lewis, Thornwill, 2007, pp.
361). Within this data collection process, there can be differentiation between three variables: opinion,
behaviour and attribute. The stage of ‘opinion’ is about the thinking and feeling of a person whereby in
contrast the stages of ‘behaviour’ and ‘attitude’ are about what the respondent does and how he is
defined through age, gender and marital status (Saunders, Lewis, Thornwill, 2007, p. 361). The personal
attitude towards the research topic can lead to personal bias. The researcher is well informed about E-
cars and he could erroneously assume that the respondent is also well informed about the product and
thus provides a lack of information in the survey. Moreover, personal beliefs, values and prejudices can
lead to wrong assumptions, which can subconsciously lead to a non-objective research. The researcher
has to obtain an objective perspective at any time. This means that he has to avoid selectivity during the
analysing process to change the results according to his own expectations (Saunders, Lewis, Thornwill,
2007, p. 187).

3.11.2 Ethical Implications

During the research process where personal data of individuals are demanded, data are stored and
deducted to answer a specific research question. It is highly important to be ethically and morally
correct throughout the entire research process. In the context of research, ethics is defined as appropriate
behaviour with the people, who come in touch with the investigation or are affected by it (Saunders,
Lewis, Thornwill, 2007, p. 183). Cooper and Schindler define ethics as norms and standards, which
influence the moral dimension in the behaviour (Cooper and Schindler, 2008, p. 195). In the field of
business and management research, there are two dominant philosophical standpoints. The first one is
the deontology view, which argues that the achievement of generating new research knowledge should
never be reached by deception. The second one is the teleological view, which weighs the benefits of
research findings and the costs of unethical behaviour to reach this result against each other. This
approach ends mostly in an ethical dilemma because it is difficult to justify a disadvantage for a group
to reach an advantage for the other group. To summarize, deviation should be avoided and in case it has
to be used during the research process, it has to be justified extremely carefully and with a good reason.
Consider the risk of distortion: under time pressure it can happen that a respondent does not even read
through the questions and just ticks randomly; it can also not be ensured how honestly the respondent
answers the questionnaires (Saunders, Lewis, Thornwill, 2007, p. 188). There are different ethical
issues, which have to be considered. If the researcher asks visitors of the exhibition to participate in the
survey, the privacy of the participants has to be ensured and the respondents are to be informed that the
33
participation is voluntary with the right to withdrawal at any time. A respectful treatment of the
respondent is important to avoid pressure, stress discomfort, pain or harm. If the visitor of the exhibition
wants to participate, he will be asked to sign participation consent and will be informed how many
minutes the survey will take (appendix A) (Saunders, Lewis, Thornwill, 2007, p. 170). While
conducting a scientific survey, the respondent has to be informed for what the generated data will be
used and assured that the data will not be used for any other purposes according to moral principles of
business research. All data has to be tested confidentially and kept anonymous. The way in which the
researcher collects and stores data of individuals has to be aligned with the data protection legislation,
which is in detail discussed in the appendix D (Saunders, Lewis, Thornwill, 2007, p. 183).

3.11.3 Time Allocation

The cross-sectional approach is chosen for the research method that is analysing a particular
phenomenon at a particular time, starting with the master thesis officially on the 1th of March 2014 till
the 23th of May 2014 (Saunders, Lewis, Thornwill, 2007, p. 148). It has to be mentioned that a previous
proposal about the master thesis was generated so the researcher had the possibility to get a deeper
insight into the topic and had time to research for secondary data. Because of the 12 weeks time
constraint, the investigation has to be planned precisely and be realistic to avoid time management
problems. After the first meeting with the supervisor on the 13th of March 2014, a time framework was
generated.

Table 3: Time Allocation Overview

3.12 Conclusion
To generate quantitative data to prove the four hypotheses of this investigation, a quantitative, self-
conducting, paper-based questionnaire is proposed. The questionnaire will be divided into five parts: the
part of sample profiling and four parts to test the hypotheses. Each hypothesis is tested with indirect
variables and these indirect variables will be tested through several question types.

34
4. Data Analysis
4.1 Introduction
The quantitative data, which will be analysed in the following chapter, were generated from a
questionnaire made up of 25 questions in total, taking five minutes to fulfil on an average, including a
marketing movie of the BMWi3 with the last question. In general, it wants to investigate how the brand
BMWi3 is perceived from a consumer’s point of view. To analyse the perception in this investigation, it
will be focused on the product BMWi3, the average E-car of the BMWi, and not on the sports E-car
BMWi8. Both E-cars together make up the brand BMWi, an umbrella brand of BMW (BMW, no date).
Consumer’s perceptions and associations with the BMWi3 will be considered as representative for the
whole brand BMWi.

4.2 Data Analysis of the Sample

The first part is composed of seven questions to give background information of the sample and to
profile a potential E-car consumer.

Question 1: What gender are you?

One hundred respondents were selected randomly. As the figure 9 shows, the sample is selected
according to the calculated quota, being representative of the entire German population. According to
the calculated quota, 49 male and 51 female respondents were selected and asked to participate in the
survey. One respondent skipped the question.

Figure 9: Gender of the Sample

Question 2: How old are you?

From the sampled population, the highest number (36.36%) is between 36 and 45 years old; 20.20% are
26-35 years old and 28.28% are 46-55 years old (figure 10). One respondent skipped the question.

35
Figure 10: Age of the Sample

Question 3: What is your highest education level?

50.51% of the sample has a University degree. 24.24% of the sampled people have a High-School
diploma and 20.20% of the respondents have a Masters Degree (figure 11). From these results it can be
deduced that the most of the respondents are very well educated. One respondent skipped the question.

Figure 11: Education Level of the Sample

36
Question 4: What is your net monthly net income?

The sample population was asked about their net monthly income. 40% of the respondents declared that
they have a net income of 1.100€-2.000€ a month. Almost a third of the respondents (28%) earn 2.100€-
2.500€ a month (figure 12). The E-car BMWi3 costs about 34.950 € in Germany. To buy an E-car like
the BMWi3, a potential consumer has to save 2.913€ a month for one year. In 5 years, the consumer has
to save 583€ a month to buy this E-car. In comparison to the evaluated net monthly income of the
sample, the E-car seems to be a very high investment, which can be a reason that 94% of the
respondents do not own an E-car or are recently planning to buy one figure 13. 91% of the sample could
not even imagine considering an E-car as the next future car purchase. Only 9% of the questioned
population could see an E-car as an option as a future car compared to 6% of the respondents who do
not own or want to buy an E-car in the near future. This means that 3% of the sample does not want to
buy an E-car in the near future but they may do it later. One respondent skipped the question.

Figure 12: Net Income of the Sample

37
Question 5: Do you own an E-car or do you want to buy an E-car presently?

Figure 13: Present Demand of E-cars

Question 6: When you buy your next car, is an E-car an option?

Figure 14: Future Demand of E-cars

Question 7: If you would NOT buy an E-car, please write down the most important reason.

From 91% of the respondents, who cannot even imagine considering an E-car as an option for the next
car-purchase, were asked in an open question to write down the most important reason for a non-
purchase in the future. Most people (37%) do not want to buy an E-car because it is too expensive. The
second named reason (21%) is the dislike of the car design and 17% of the sample has doubts if they are
independent enough to buy an E-car (figure 15).

38
Figure 15: Reasons for not buying an E-car

eco  image   2  

no  trust  in  technology     1  

too  long  charging  time   2  

unsure  about  the  charging  infrstructure   4  

too  slow   8  
Datenreihe1  
don't  like  the  design   21  

too  new   8  

reach   17  

too  expensive   37  

0   5   10   15   20   25   30   35   40  

To resume the research findings of the previous questions, which should analyse the consumer
behaviour of the sample, most respondents are between 25 and 55 and are very well-educated. The main
share of the sampled population has a net monthly income of 1.110€-2.500€. 94% of the respondents do
not own an E-car or are not recently planning to buy one and 91% of the sample could also not even
imagine considering an E-car for the next car purchase. The most often named reason for not buying an
E-car is the high price and the design and doubts if the E-car would be sufficient in relation to reach.
Consequently it could be proved that the majority of the German population do not buy an E-car and is
also not planning to buy one in the future. This identified problem justifies again the reason for this
investigation, which is to find out about the reasons and how this problem can be solved in relation to
marketing communication activities in the German automobile industry.

4.3 Data Analysis for Hypothesis 1

The consumer’s perception of the brand BMWi is low.

To test these hypotheses the independent variables were used:

• Product  information  
• Brand  personality  
• Brand  associations    
 
4.3.1 Product Information
Question 8: What do you think is the costs of an average mid-range E-car like the BMWi3?

34% of the respondents estimate the price of the E-car BMWi3 in Germany to be about 41.000€ to
45.000€. This price range is 17% to 29% more than the real price of the E-car BMWi3 in Germany with
34.950€. 30% of the sample estimates the BMWi3 to be cheap and 45% estimate the BMWi3 to be too
expensive. Just 24% of the sample ranked the E-car BMWi3 in the right price category (figure 16). It
39
cannot be assessed if the answer was given because of prior knowledge or sheer coincidence. But it can
be determined that 76% of the respondents gave the wrong answer. Consequently, more than half of the
respondents do not know the real price of the BMWi3.

Figure 16: Estimated costs of the BMWi3

Question 9: How fast do you think can the BMWi3 be charged?

The answers of the question, ‘How fast can a BMWi3 be charged?’ is relatively consistent. The correct
answer of this question is that the normal charging process with an average socket takes 6-7 hours,
which was answered right by 17% of the sample (BMW, no date). 16% of the respondents think that the
E-car BMWi3 needs 8-9 hours to be charged which is 2-3 hours longer than it takes in reality. The
majority of the sample (68%) thinks that the charging process takes longer than 6-7 hours and 16% think
that the charging process takes less than 6-7 hours. To summarise 17% of the sample answered the
question right and 84% answered the question wrong (figure 17).

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Figure 17: Estimated charging time of the BMWi3

Question 10: What do you think is the reach of the BMWi3 with a fully charged battery?

For this question 98 answers were given. The right answer to this question ‘What is the reach of the
BMWi3 with a full-charged battery?’ is: 160km (BMW, no date). 28.57% of the sample answered
correctly (figure 18). More than the half of the sample (60%) thinks that the reach is 51-150km, which is
an underestimation. Just 8% of the respondents think that the reach is higher than in reality.
Consequently, it can be assessed that the reach of the BMWi3 is estimated significantly low than it is in
reality.

41
Figure 18: Estimated reach of the BMWi3

Question 11: What acceleration does the BMWi3 have in 3.7 seconds?

38% of the respondents guess that the acceleration of the BMWi3 is about 0-50kmh/h, 25% think the E-
car has an acceleration of 0-40 km/h and 19% decided for 0-60km/h,which is the correct answer for this
question (figure 19). In total comparison, 72% think the E-car BMWi3 has a lower acceleration and 9%
think that the BMWi3 has a faster acceleration. All in all, the BMWi3 is perceived as lower performer
than it is in reality. Acceleration is an important technical data about a car, which indicates the technical
power of the engine.

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Figure 19: Estimated acceleration of the BMWi3 in 3.7 seconds

Summarizing the research findings in relation to product information about the BMWi3, more than half
of the respondents do not know the real price of the BMWi3 and 69% of the questioned population
could not give the correct answer for the question ‘How fast can an BMWi3 be charged?’. Besides, it
can be assessed that the reach of the BMWi3 is estimated significantly lower than it is in reality. Also,
the acceleration of the E-car is underestimated by a significant majority of the sample population. All in
all, it can be assessed that the potential consumer is not sufficiently informed about the E-car. According
to the Hierarchy of Effects model the consumer collects information to create a positive association and
assess if the product can satisfy its needs on the first stage of conative processes. The second level of
affective process and conative process will follow. Each stage must be fulfilled before the consumer can
proceed with the next step (Lavidge, Steiner, 1961, pp. 137). The model has been regarded as a
measurement tool for the effectiveness of advertising (Hoang Sinh, 2013, p. 92). Consequently, the lack
of product information is a proof of the ineffective advertising process of the BMW.

4.3.2 Brand Personality

Question 12: Which product attributes do you associate with the BMWi3?

It was asked, which kind of product features the potential consumer associates with the BMWi3. Since
the respondent could choose several answers, they are expressed in absolute numbers. Fourteen product
features were listed from which six attributes meet the brand image of BMWi3 and seven attributes,
which the BMW wants to avoid, are associated with the BMWi3. In chapter ‘2.3.2.5 Communicated
Brand Image in the Marketing Campaign of the BMWi’, it was discussed how the BMW wants the new
E-car brand BMWi to be positioned in the minds of potential consumers. The new premium E-car
BMWi3 has to fulfil successfully the gap between a modern premium car and a new environmental-
friendly concept. The German car manufacturer wants to combine traditional brand values of BMW like
dynamism, design and driving passion with the new generation of E-cars. Therefore, product attributes
like environmental-friendly, modern, dynamism, unique design should be associated with the brand
BMWi. Negative clichés like E-cars are just for people supporting the eco-movement or E-cars don’t
have the same power like engine cars has to be avoided. The figures 21 and 22 show how much the

43
consumers associate the brand with the planned (positive) and unplanned (negative) product attributes.
The most oft-named product attributes, which were associated with the BMWi3 are: environmental-
friendly (75 votes), modern (48 votes) and practical (33 votes). The minority voted for positive product
attributes like sporty, easy to handle, dynamic and stylish. The negative product attributes, like eco
(73votes), not stylish (25 votes) and old-fashioned (25 votes) were associated with the BMWi3.

Figure 20: Associated Product Attributes with the BMWi3

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Figure 21: Associated positive Product Attributes with the BMWi3

Positive  product  attributes  

Positive  product  attributes  

sportive   9  
easy  to  handle   11  
dynamic     18  
stylish   20  
practical   33  
modern   48  
environmental  friendly   75  

Figure 22: Associated negative Product Attributes with the BMWi3

Negative  product  attributes  

Negative  product  attributes  

not  environmental  friendly   1  

elegant   1  
complicated  technology   14  
slow   15  
old-­‐fashioned   25  
not  stylish   25  
eco   73  

4.3.3 Product Associations

Question 13: If you consider the BMWi3 as a status symbol, which attribute do you associate the most
with it?

According to the Oxford dictionary, a status symbol indicates a ‘person’s wealth or high social or
professional status’ (Oxford University Press, no date). Half of the respondents (50.51%) ranked the
BMWi3 suitable for a person who has average success in life. 26.26% of the sample ranked the E-car as
‘understatement’ which describes a person who does not want to show his success in public (figure 23).
All in all, the E-car is not perceived as a car, which indicates a status symbol in society. One respondent
skipped the question.

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Figure 23: Associated Attributes considering the BMWi3 as a Status Symbol

Question 14: Which lifestyle do you associate with the BMWi3?

John Grant, who wrote ‘The Green Marketing Manifesto’, explained the negative image of a brand,
which is linked to the word ‘eco’ or ‘green’. It is not a simple image; it is more a factual and sceptical
evaluation of a brand or a product (Arnold, 2009, pp.70). An ‘eco’ product is linked with the consumer
class, which is called LOHAS, which is explained in the appendix C. Almost half of the respondents
(53%) would rank the BMWi3 as an ‘Eco-car’. This does not go with the aim of the BMW, which is to
make the consumer perceive that the E-car is normal like every other car. 18% of the sampled
population perceives the E-car as a trend. A trend becomes successful in a special time frame, which is
also not the goal of the BMW. The company wants to implement the E-car on a long-term basis as an
everyday car of the future. But, the BMWi3 is not perceived as an everyday car by the sample. Almost
one-third (29%) of the respondents categorized the BMWi3 as a family car (figure 24).

46
Figure 24: Associated Lifestyle with the BMWi3

Question 15: With which gender would you associate the BMWi3?

According to the majority, potential E-car consumers perceived the BMWi3 appropriate for women
(63%) instead of men (19%), visualized in figure 25.

Figure 25: Associated Gender with the BMWi3

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Question 16: Which age would you associate with the BMWi3?

More than half of the sample (62%) perceived the BMWi3 as an E-car for adults; 21% ranked the E-car
for young adults and 17% ranked the BMWi3 as a car for pensioners (figure 26). It was found that the
BMW’s marketing campaign is already targeted to adults and younger people with a modern and trendy
design.

Figure 26: Associated Consumer Age with the BMWi3

Question 17: If the BMWi3 would be a person, with which characteristics would you associate this
person?

Several answers could be selected for this question. Eleven different characteristics, which could be
divided into positive and negative characteristics, were used to investigate which perceived brand
personality the brand BMWi has. The BMW aims that its E-car brand be perceived and described with a
positive brand personality. The traditional engine car brand BMW symbolizes dynamism, unique design
and driving passion, which has to be combined with the new electronic car. The BMW’s main goal is to
create a feeling of driving fun, curiosity and a feeling of familiarization with the new E-car
(Steinkirchner, 2013). Most of all, the brand is perceived as sympathetic (71 votes), honest (57 votes),
funny (55 votes) creative (41 votes) and impulsive (34 votes). Negative characteristics like dishonesty,
eccentric and unsympathetic were almost not voted (figure 27).

48
Figure 27: Associated Characteristics considering the BMWi3 as a Person

To come to a conclusion in relation to the product associations, the BMWi3 is perceived as an E-car for
an average successful person or for someone whose success is understated. Therefore, it is not
categorized as status symbol. Almost half of the respondents ranked the BMWi3 as an ‘Eco-car’, which
does not aligned with the BMW’s aim that the consumer perceives the E-car as normal. Moreover, the
E-car is categorized as a trend-car and as a family car but not as an everyday car like it wants to be
achieved by the BMW. It can be summarized that the BMW achieved on the one side a positive brand
image of the BMWi3 with the attributes they wanted to communicate. But, on the other side, the people
also associate some negative attributes with the E-car, which indicate that the BMWi3 does not have a
modern and sufficiently good-looking design. For example, the word ‘eco’ is a more negative word in
the German society and, therefore, should not be associated with the BMWi3. The sample also
associates the brand more with the female gender (63%) instead of the male gender (19%). Moreover,
the BMWI3 is associated with young adults and adults. For the majority, the brand is associated with
characteristics like sympathy, honesty, funny, creativity and impulsive. Consequently, the brand is
perceived as positive.
The three indirect variables were tested and it can be assessed that the degree of product information is
too low; indeed the brand personality is positive on the one side but on the other side too many negative
characteristics are also associated with the E-car. In contrast, the brand association is described with
positive attributes. In consequence, two of three variables could not be confirmed and, therefore, the
consumer’s perception of the brand BMWi has to be improved and the hypotheses 1 can thus be
confirmed.

49
4.3 Data Analysis for Hypothesis 2

The consumer’s attitude of German E-car brand manufacturers is positive.

To test the hypotheses the independent variables were used:

• Perceived  instrumentality  
• Value  of  the  instrumentality  for  the  consumer  
 
These two variables measure the consumer’s brand attitude of BMWi according to the Rosenberg
model.

Question 18: Which added value of the BMWi3 do you perceive?

The sample was asked which added value of the BMWi3 is perceived, choosing among three answers
and ranking these according to personal importance. All listed instrumentalities represent added value to
the E-car BMWi3. It has to be investigated that from these instrumentalities, which were selected and
how important were these for the sample. Three hundred votes are widespread between the different
answer possibilities. Considering the first factor of the Rosenberg model, perceived value adding
instrumentalities, all the votes show almost a uniform distribution without clear tendencies (table 4).
Consequently, individual needs of instrumentality are widespread and different from person to person.
This survey shows no clear result, which instrumentality adds the most value to a distinct majority. The
second factor of the Rosenberg model is the perceived instrumentality and the degree of importance for
the respondents, what is visualized in figures 28 to 31. The more instrumentalities can be associated
with the BMWi3, the better for the brand because then the brand is perceived as value adding in several
categories. The seven possible answers were all nominated with almost no votes for ‘not important’.
Almost all instrumentalities have the most votes in the category ‘very important’ and ‘indispensable’.
Consequently, if someone selected an instrumentality, it was at the same time very important and
indispensable for the respondent. Interesting for the BMW is the category ‘indispensable’: the sample
voted the most for ‘known brand’ (20%) and ‘high degree of safety’ (18%) (figure 32). All in all, the
brand attitude of BMWi3 measured by the Rosenberg model is in general positive and value adding in
all categories. Therefore, the hypothesis 2 ‘The consumer’s attitude of German E-car brand
manufacturers is positive’, can be confirmed.

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Table 4: Perceived added Value of the BMWi3

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Figure 28: Perceived added value of the BMWi3 in total

Figure 29: Perceived added value of the BMWi3, which is not important

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Figure 30: Perceived added value of the BMWi3, which is important

Figure 31: Perceived added value of the BMWi3, which is very important

53
Figure 32: Perceived added value of the BMWi3, which is indispensable

4.4 Data Analysis for Hypothesis 3

The marketing activities of the BMWi brand are not trustworthy enough.

To test these hypotheses the independent variables were used:

• Purpose  of  the  BMWi  marketing  campaign  

• Trust  in  the  BMW  expertise  
 
According to marketing expert Frank Dophreide, the German E-car industry has to fulfil the gap
between a traditional car manufacturer brand and an eco-product brand, which are in contrast to each
other. The traditional car brand is more likely seen as being not environmental-friendly and as
specialized in racing engines; in contrast, a green E-car brand is more likely to be perceived as
specialized in environmental friendly engines and less focused on speed and design (Steinkirchner,
2013). Therefore, it will be investigated if an E-car brand, like BMWi, should be marked under the
umbrella of a traditional car brand.

54
Question 19: Do you have trust in the expertise of BMW, a traditional engine car manufacturer, in
producing E-cars?

Several questions were designed to find out how trustworthy the sample perceives the brand BMWi.
The sample was asked if they trust in the expertise of BMW, in producing E-cars although its expertise
is actually in producing traditional engine cars. The majority (69.70%) stated that they do not trust the
brand and in contrast 30.30% of the people say they trusted the brand. One respondent skipped the
question (figure 33).

Figure 33: Trusting the car manufacturer BMW

Question 20: If you consider the images of the marketing campaign of the BMWi3 below, do you
believe that the BMW is honestly interested in reducing CO2 emissions to be environmental friendly?

The majority (73.74%) said that they do not believe that the brand BMWi is honestly interested in
reducing CO2 emissions to be environmental friendly in relation to the marketing campaign (figure 34).
Almost a quarter of the sample (24.24%) believed in the honest marketing story of BMWi and 2.02% of
the people were not sure about it. One respondent skipped the answer.

Figure 34: Believe in Honesty of the BMW

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Question 21: Do you understand the marketing message of BMWi?

In the next question, the sample was asked if they understood the marketing message. 47.47% answered
the question with ‘yes’ and 37.37% felt they were not sure about it. The two categories ‘I feel confused’
and ‘I don’t get the message’ can be considered as misunderstanding the question, which made up a
total of 15.15% of the respondents (figure 35).

Figure 35: Understanding the Marketing Message of the BMW

Question 22: Do you think the BMWi3 will be successfully sold in the future?

62.24% of the sample thought that the BMWi3 will not be successfully sold in the future, 33.67%
thought the BMWi3 will be successfully sold and 4.08% were not sure about it (figure 36). One
respondent skipped the answer.

Figure 36: Believe in the Success of the BMWi3

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To sum up, the majority does not have trust in the expertise of BMWi in producing E-cars. This means
the gap between a traditional car engine producer and an E-car producer is not fulfilled successfully.
The majority also think that the BMW is not honest about how to target the reduction of the CO2
emissions for being environmental friendly. The marketing campaign is not convincing enough. What is
alarming is that just half of the respondents understood the BMW’s marketing message clearly; the other
half was not sure about it. They were confused or didn’t get the message at all.

4.5 Data analysis for Hypothesis 4

The brand equity of BMWi is not strong enough.

The brand equity of BMWi will be measured by the ValueDrivers model. The model analyses how
meaningful a brand experience is for a widespread target audience and the degree of differentiation of a
brand from its competitors. Differentiation can be achieved through intrinsic or extrinsic variables,
which influence consumer behaviour (Hollis, Pincott, 2013).

The hypothesis will be tested by independent variables:

• Consumer’s  identification  with  the  brand  

• Intrinsic  emotion  building  in  relation  to  associations  
• Extrinsic  emotion  building  during  brand  experience  or  for  product  design  

Question 23: Can you identify with the brand BMWi?

Almost half of the sample (55%) could identify a little with the brand BMWi; in contrast, 36% could not
identify with the E-car brand. Only 9% could identify totally with the brand BMWi (figure 37).

Figure 37: Identification with the brand BMWi

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Question 24: Which feeling do you have when you think of the brand BMWi?

To test the intrinsic emotion building in relation to associations of the sample, the respondents were
asked to select several listed emotions associated with the BMWi3. Three hundred thirty-two votes were
given which means on an average one respondent gave three answers. Seven negative emotions were
listed which should not be associated with the BMWi3 and there were six positive emotions, which
should be linked with the BMWi3. Considering figure 39, the black-marked shares are positive feelings,
which form together the majority. The positive emotions were: fun (19%), liking (18%), interest (15%),
excitement (8%), trustworthiness (5%) and curiosity (9%). Negative emotions, which were named in
relation to the BMWi3 were: uncertainty (10%), unfamiliarity (10%), and lack of interest (4%).
Negative emotions, which got almost no votes were: dishonesty, disliking and confusion.

Figure 38: Associated feelings with the brand BMWi

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Figure 39: Associated Intrinsic Emotions with the brand BMWi

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Question 25: Watching the BMWi marketing movie, what kind of emotions do you feel?

To test the extrinsic emotion building in relation to associations with the BMWi3, the same list of
emotions as in the previous question 24 were presented to the sample. It was to be evaluated if the
respondents changed feelings after being confronted with the marketing movie of the BMWi3, which
can be accessed at the official BMW homepage (
http://www.bmw.com/com/en/newvehicles/i/i3/2013/showroom/images_and_videos.html#c=1&i=1).
The BMW could achieve 58% of positive emotions (black-marked in figure 41), which were linked with
the E-car, but 42% of the extrinsic feeling were negative. The negative feelings, which got most votes
were: uncertainty (12%), curiosity (11%) and unfamiliarity (9%). Even after the marketing movie, the
E-car was still perceived as unfamiliar, which could be related to the totally new product and which had
to be presented to the sample. Considering figure 42, it can be evaluated if the feeling of the respondents
had changed after watching the BMWi3 marketing movie. The respondents were even more uncertain
about the E-car after watching the movie and more curious. At the same time he gained an emotion of
excitement and more fun.

Figure 40: Associated Emotions with the brand BMWi when watching the Marketing Movie

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Figure 41: Associated Extrinsic Emotions with the brand BMWi

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Figure 42: Associated Intrinsic and Extrinsic Emotions with the brand BMWi in an overview

80  

70  

60  

50  

40  

30   intrinsic  
extrinsic  
20  

10  

0  

To conclude, the BMW has to think seriously about the fact that 36% of the sample could not identify
with the brand. Negative intrinsic feelings like uncertainty, unfamiliarity, curiosity and lack of interest
in relation to the BMWi3 should be avoided. The increased uncertainty and curiosity as well as the
dwindling interest of the respondents after watching the marketing movie, were important indicators for
the BMW as to how the company’s marketing movie has to be improved. The high percentage of
negative feelings in the intrinsic and extrinsic emotion building leads to the assumption that a strong
differentiation of the brand BMWi cannot be achieved. The lack of identification and differentiation, the
two important ValueDrivers of the brand equity, according to the ValueDrivers model, lead to the
assumption that the brand equity of BMWi is not strong enough to positively influence the purchase
behaviour. The hypothesis that the brand equity of BMWi is not strong enough can thus be confirmed.

4.6 Recommendations
The following paragraph is divided in the segment of ‘Future academic study’ and the segment of
‘Recommendations for industry’. The recommendations are based on the research findings and the
knowledge of the discussed literature review.

4.6.1 Future Academic Study

Academic papers about marketing strategy for electronic cars in the German automobile sector are
surprisingly rare. Doing research on this field showed that there are some studies and market research
papers to analyse if the E-car can be successfully be implemented or not, providing future scenarios,
which were discussed in the literature review.

To fulfil a research gap, this academic investigation analyses the reasons behind a proven low consumer
demand for E-cars in Germany and consumer behaviour after the actual global marketing campaign of
BMW for the BMWi E-car series. The reasons for low demand were investigated in relation to the
62
consumer’s perception of and attitude towards the BMWi brand in an attempt to gain valuable customer
knowledge. At the end of the investigation, the following four hypotheses could be confirmed and will
be explained in detail in section ‘4.6.2. Recommendations for the industry’:

Hypothesis 1: The customer’s perception of the brand BMWi is low.

Hypothesis 2: The customer’s attitude of German E-car brand manufacturers is positive.

Hypothesis 3: The marketing activities of the BMWi brand are not trustworthy enough.

Hypothesis 4: The brand equity of BMWi is not strong enough.

This investigation provides an overview of how to improve marketing activities in relation to green
branding theory. But more research is needed in this field. From the perspective of customer relationship
management based on customer knowledge, valuable customer interaction can be generated, which
leads to customer satisfaction and thereon to customer value (figure 43). In the fields of customer
interaction, customer value and customer satisfaction, further research is needed to provide a deeper
insight into different perspectives in this investigation on how to optimize marketing strategies for
electronic cars. In order to generate valuable customer knowledge, the data of potential customers will
be selected. Then, an average customer profile will be generated; based on this, different customer
segments can be identified. On the level of customer interaction, customer care relationship programmes
and integrated channel management systems were implemented while not profitable customer segments
were rejected. Through the increased effectiveness of marketing, customer loyalty and customer
acquisition increase, thereby generating customer value. If the next level of customer satisfaction is
reached, high profit margins are ensured (Zumstein, 2005,  p.  11).

63
Figure 43: Interpretation of the Balance Scorecard in Customer Relationship Management

Source: Zumstein, D.,2005.

4.6.2 Recommendations for the Industry

The result of the research findings in the field of marketing strategies for E-car will also bring value for
the German automotive sector. Marketing specialists, product and brand managers and market
researchers working in the German automotive sector can use the new approach to adapt its targeted
green branded strategy successfully.

4.6.2.1 Recommendations for the Consumer Behaviour

Regarding consumer behaviour it could be ascertained that over 90% of the sample do not own an E-car,
are not recently planning to buy one and are also not willing to consider an E-car as an option in relation
to the next car purchase. Reasons for this were the high price, the design and the reach of the E-car. The
research findings of this investigation go with the opinion of some experts, who are sceptical if the E-car
can be implemented properly in the German automobile market. Prof. Dr. Hans-Peter Lenz said: ‘The
combustion engine is more in progress than the battery in relation to the power density’ (Bayme vbm,
2012, p. 14). The reasons for the high price of E-cars are discussed in detail in the appendix G. If these
reasons will be communicated through marketing activities, the willingness to buy an E-car can be
influenced positively. It is presumed that the design of the BMWi3 (appendix E) is too different from
the normal engine cars and thus the E-car manufacturer has to improve the design. Concerns about the
reach of the E-car can be counteracted with marketing campaigns, which communicate the fact that the
German government is planning to make high investments in the standardization of the infrastructure for
the E-car charging process. With more charging possibilities, concerns about the reach can be
minimized. Government action can strengthen the trust in the future implementation of the E-car
(Backhaus et al. 2011, pp.14). The marketing expert, Björn Sprung, director of the international
Marketing agency “Nielsen”, underlines that the marketing strategy of German automobile companies
need to focus more on sales arguments, which are important for the customer. If the marketing will be
targeted in relation to customer needs the demand for E-cars can be accelerated (Study CarIT, 2012).
The most communicated marketing topic in relation to E-cars is at this stage the environment. But the
consumer needs in first line to be informed about important technological aspects to reduce uncertainty
and a lack of information in relation to E-cars (Study CarIT, 2012).
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4.6.2.2 Recommendations for Hypothesis 1
According to the previous findings, the BMWi3 has an image issue. The E-car is not perceived as a
status symbol linked with a successful person; rather, it is perceived as an eco-car, trend car and family
car but not as an everyday car, which is what BMW would like to achieve. Frank Dophreide pointed out
that public clichés; for example, electronic cars are only for people from the eco-movement must be
prevented. Besides, BMW needs to achieve a change in the customer’s mind: Customers should begin to
perceive the E-car as any other conventional car from everyday life (Steinkirchner, 2013). Furthermore,
negative product attributes (figure 22) like eco (73 votes), not stylish (25 votes) and old-fashioned (25
votes) were associated with the BMWi3. Consequently, BMW could not achieve the right product and
brand associations through its marketing campaign. Further studies must investigate why the E-car has a
negative image. BMW is a pioneer in presenting a sports E-car model, BMWi8, which breaks the cliché
of electronic cars with its sports car features. The model underlines the revolution of electronic cars.
Hence, it was a good marketing strategy of BMW to present both models at the same time
(Steinkirchner, 2013). BMW has to ensure that its E-car brand will be perceived and described as having
a positive brand personality. The traditional engine car brand, BMW, symbolizes dynamic design and
driving passion, which must now be extended to the new electronic car. Positive brand personality
attributes were linked with the brand but negative associations have to be dissolved. The main goal of
BMW is to create a feeling of driving fun, curiosity and familiarization with the new E-car, but this goal
is yet to be fully achieved (Steinkirchner, 2013). BMW should focus its marketing communication
activities on the instrumentality categories, which are perceived as very important or indispensable for
the majority. For example, within the category ‘indispensable’, the sample voted the most for ‘known
brand’ (20%) and ‘high degree of safety’ (18%) (figure 32). In the category ‘very important’, the
maximum votes are in ‘high degree of quality’ (18%) and ‘good quality price/ratio’ (18%).
Marketing communication activities must be strengthened. A marketing campaign where successful and
well-dressed people drive the BMWi3 could strengthen the brand personality. The sum of all
characteristics of a brand forms its brand personality. A change in perception can lead to a brand image
change (Picktin, Broderick, 2004, p, 245). According to the Hierarchy of Effects model, influencing a
costumer’s attitude on a cognitive level is very difficult because the purchase is of prime importance for
the customer. BMW has to minimize customer dissonance by influencing customer opinions and
emotions positively. During the E-car purchase, the customer will orientate on the purchase behaviour
of his environment, because it is assumed that the customer has never bought an E-car before. Opinion
leaders are important factors that can influence the purchase process positively. Thus, BMW has to
focus on the after-purchase process of an E-car to ensure that no dissonances develop and the customer
is satisfied, which will lead to word-of-mouth propaganda (Solomon, 2013, p. 253). Using these positive
influence factors, the customer’s perception of the brand BMWi can be influenced positively.

4.6.2.3 Recommendations for Hypothesis 2

It could be assessed that the customer’s attitude towards the German E-car brand, BMWi, is positive.
According to the hierarchy of effects model, opinions are built on a cognitive level, attitudes are built on
the affective level and values are linked with the conative process (Baines, 2011, p. 81). Consequently,
it can be assessed that, on the affective level, no issues were developed in relation to the purchase
process. But the Hierarchy of Effects model works only if the levels were experienced one after the
other, thereby leading to a purchase.

65
4.6.2.4 Recommendations for Hypothesis 3
It could be confirmed that the marketing activities of the BMWi brand are not sufficiently trustworthy.
A successful way to create green brand perception is by communicating a negative issue and then
presenting the solution offered by the brand. With regard to electronic cars, the negative effects of
pollution can be presented first, followed by the solution offered by the electronic car. This approach is
highly credible because it reduces reporting bias and sceptical opinions (Soloman, 2013, p. 293). In
Arnold’s opinion, consumers are often unable to understand marketing messages because they are too
confusing, and complicated communication raises uncertainty. Consequently, personal involvement is
low and the costumer cannot develop the necessary positive feelings, which results in their not
purchasing the product. Companies that communicate clear and easily understandable marketing
messages can change people’s minds and, therefore, even the action of the purchase process (Arnold,
2009, p. 70). The advice of experts at OgilvyEarth is that the environmental marketing message should
be honest and truthful in order to create authenticity and credibility. In order to provide truthful content,
the details should be explained in the integrated marketing strategy. In particular, content generalization
and excessively broad taglines should be avoided (Williams, 2010). Another possible assessment is that
the majority does not trust the current expertise of BMWi to produce E-cars. BMW must communicate
more on how they achieved this expertise and how innovative and qualitative the technology of the
BMWi3 is. The customer needs to gain trust in BMW having collected enough expertise and in the
brand’s willingness to invest enough to sell the BMWi3 to ensure long-term future success. More than
half of the respondents currently think that the BMWi3 will not be sold successfully in the future. BMW
could publish interviews on a regular basis to reassure the customer and ensure that he is steadily
informed about the technological progress of BMW in this context. These measures could increase the
trustworthiness of the BMWi brand.

4.6.2.5 Recommendations for Hypothesis 4

It could be confirmed that the brand equity of the BMWi brand is not strong enough to lead to an E-car
purchase. The measured share of negative extrinsic feelings from the customer is too high. The customer
needs to become familiar with the product through more information providing, test-driving experiences
and, for example, the recommendations of opinion leaders of their environment. The customer needs to
develop trust in the product and be informed about all the technological challenges that are unfamiliar
like, for example, the charging process, the reach, the acceleration and the sound of the E-car. A high
level of brand equity is reached if the consumer associates the brand with different benefits. This would
result in a positive brand evaluation (Shimp, 2007, p. 39).

4.7 Conclusion
After analysing the generated data it can be summed up, that in general the attitude of consumers toward
the brand BMWi is positive. But the majority of the sample does not demand an E-car currently or in
future, which aligned with the researched industrial theory. Most often named reasons for the low
demand were price, design and reach. It was recommended that BMW has to underline the product
advantages of the BMWi3 also in comparison in the marketing campaign to reduce the number of
potential consumer which are low informed about the product, which leads also to uncertainty.
Additional the consumer does not trust in the brand BMWi. Adapting green branding theory, the BMW
should communicate easy understandable, truth telling, factual and specific marketing messages to
create authenticity and credibility.

66
5. Overall Conclusion
Extensive research was carried out in the fields of consumer behaviour, branding strategy and green
branding strategy as well as the industrial evolution of the German E-car sector in order to ascertain how
to market an electronic car successfully in the German automobile market. It could be assessed that the
private demand for E-cars in Germany is growing only mildly at present. In addition, there is no
academic theory on how to market a green product like the E-car through the traditional brand image of
an engine car manufacturer. Therefore, the goal of this academic paper is to provide valuable knowledge
for the German automobile industry and marketing experts regarding how to sell a green product
without using a green brand image. Reasons for a mildly growing consumer demand of E-cars in the
Germany needs to be analysed. The successful implementation of the innovative E-car is very important
from political, ecological and social perspectives, because the E-car is a future mobility solution, which
does not pollute the environment with greenhouse gas emissions as do engine cars.
Since BMW is a pioneer in creating integrated, global marketing campaigns for premium E-cars, the E-
car brand, BMWi, was selected to analyse the current success of the marketing activities of the German
E-car brand manufacturer in the German automobile market. Therefore, profile data of potential future
E-car consumers was collected and four hypotheses were tested, all of which could be confirmed by
analysing the research findings of the survey. The analysed data of a quantitative survey provided
valuable consumer behaviour knowledge in the German automobile sector.
Summarizing the results of the research findings, it could be assessed that on the one side the general
customer’s attitude towards German E-car brand manufacturers is in general positive, which builds a
good base for reinforcing positive perceptions regarding German E-car brands. But on the other side
customer’s perception of German E-car brands is low. Therefore, German E-car brand manufacturers
need to change their perceptions and with it the brand image. This can be achieved by minimizing
customer dissonance after purchasing the product by influencing customer opinions and emotions
positively. When a consumer buys an E-car, he is highly involved in the process; therefore, the
consumer’s perception and attitude is difficult to change. It could be investigated that marketing
activities of German E-car brands are not trustworthy enough to communicate credible marketing
messages. With respect to green branding theory, experts advise communicating environmental claims
in a factual, specific and clear manner. E-car marketers should be honest in order to create authenticity
and credibility, which can be achieved by providing detailed information about the product and brand.
Green brands that communicate in a transparent and clear manner are proven to achieve more value in
public. The German E-car industry has to fulfil the gap between a traditional car manufacturer brand and
an eco-product brand, which are in contrast to each other. The engine car brands are more likely seen as
being not environmental-friendly and as specialized in racing engines; in contrast, green E-car brands
are more likely to be perceived as specialized in environmental friendly engines and less focused on
speed and design. The BMW marketed its new E-car series BMWi under the umbrella brand BMW,
trying to profit from the halo effect, which means that a new sub brand can profit from the success of its
umbrella brand. But in this case of the BMW, the halo effect was not given. It should be considered to
separate the E-car brand BMWi consciously from its umbrella engine car brand BMW, to make a clear
difference between the two different brand images and to increase the trust in the car manufacturers
expertise. Furthermore, research findings have confirmed the hypothesis that the brand equity of a
German E-car brand manufacturer is not strong enough to convince the consumer to buy an E-car. A
high level of brand equity can be reached if the consumer associates the brand with different benefits,
resulting in a positive brand evaluation, which can be achieved through a deeper familiarisation with the
product. Familiarisation can be increased through providing more clear and specific product
information, providing deep insights into new technology and the product benefits of an E-car. The
consumer needs to get familiar with the product with more information, test-driving, and
recommendations of opinion formers of their environment. The strategy of the BMW is to provide test-
67
driving with E-cars for everyone and also implement the E-car in the car-sharing project ‘Drive Now’ of
BMW.
The Hierarchy of Effects model was discussed in the literature review, which describes three dimensions
of the E-car purchasing process. In the first cognitive dimension, the consumer’s perception is formed
from the product knowledge and brand personality. This leads to the development of needs, which the
consumer wants to satisfy. Considering the research findings, the reason of the not purchase of E-car in
Germany can be identified as confirmed consumer’s lack of information, not strong enough brand
personality an thus a weak brand image as well as a not high enough brand equity of German E-car
brands. These issues can lead to consumer’s unawareness of the product E-car and can thus the
consumer cannot develop needs to buy an E-car. If this issue could be overcome the potential E-car
consumer could achieve the second affective stage of the purchasing process. On this stage, the
consumer develops a liking or disliking for the product based on brand attitude. The research findings
confirmed that the perceived attitude of potential E-car consumers in Germany in relation to E-car
brands, is positive. Therefore, the consumer can achieve the third conative stage of purchase, whereby
the consumer is convinced to purchase an E-car, influenced by his personal values.
The data ascertainment of this dissertation provides highly valuable consumer knowledge, which forms
the base of future successful marketing campaigns for German E-car brand manufacturer and provide
valuable knowledge for marketing experts to make further investigations in this academic field. The
valuable consumer behaviour knowledge makes targeted marketing activities possible, which enables
the brand to reach the right potential E-car consumer with a suitable marketing message at the right
time, at the right place. Additional, divergence losses can be minimized and a higher customer
satisfaction can be reached. Therefore, this is a valuable contribution to a recommendation how to
market E-cars successfully in the German automobile industry, supporting the political, ecological and
social goals to reduce CO2 emissions.

6. Self Reflection on Own Learning and Performance

6.1. Introduction
The MBA program at the Dublin Business School provided me different learning outcomes and let me
develop further academic and personal strengths. In the following paragraph will be discussed several
learning outcomes and the personal added value I achieved through the studies. In the first part
theoretical learning developments and how I could adapt the theory to my personal learning outcomes
will be discussed. The second part will present personal achievements and the third part will examine
the issues I have struggled with. The fourth part talks about my personal added values, which I achieved
during the MBA programme and the fifth part presents the action plan for implementing my personal
learning.

6.2. Learning Style Theories

To analyse my personal learning process the learning cycle of Kolb will be considered (figure 43)
(Dixon, 1999, p. 40). The cycle of Kolb’s consist of four different stages, starting with the first stage of
‘concret experience’, what Kolb describes as experiencing the world through its senses. To learn from
these experiences the occurrence needs to be reflected in the second stage of ‘reflective observation’.
The process of reflection is selective and influenced by our expectations and our existing meaning. In
the third step of the learning cycle named ‘abstract conceptualization’, sense and meaning were built of
what we experience. The final stage of Kolb’s learning cycle of active experimentation, the meaning is
tested out, which was constructed of experience. It differs from person to person at which stage of the
cycle a specific proficient is developed, developing an individual leaning style preference. An individual
learning process is defined, whereby knowledge is generated through the transformation of experience.
68
Considering my personal learning process during this academic investigation, when I started doing
broad research on the field of green marketing I red several books, papers and articles, which inspired
me in several directions. I tested several ideas and directions of topics for the dissertation. It happened
that there existed already research findings on the topic I was planning to write about, which led to
deeper research till I found an interesting topic, which could be perfect combined with a green
marketing approach. I learned fast how to do research and how to skim articles for the right information.
I learned how to use online searching tools effective and how to organize my sources and what I kept
from the sources. I often did mind maps when I was struggling with some complex topics, which helped
me to organize my thoughts. Also discussing with my family or friends about my master thesis topic
helped me to see the goal of the master thesis and connections of sub topics more clearly. I red literature
how to write a dissertation and so I learned how to do things I never did before, what was a great
achievement.
I determined that I learn the most from doing things wrong. If something did not work I reflected the
failure and realized that I have to change my strategy or approach. It tested if another approach would
lead to success and through this whole process my personal individual learning cycle developed.
Adapting my personal learning to the learning cycle of Kolb, considering for example the action of
‘Research for literature’, I try to find literature in the way I think it might work (Active
Experimentation). If I fail, I experience that it does not work in this way (Concrete experience). I reflect
what I did and how I might improve the action (Refelective Observation) and if I could improve my
performance, I learned something actively (Abstract conceptualisation). This learning process is an on-
going process, which can be optimized if I am aware of my learning style. I reflect my stage of learning,
which can accelerate the learning process. Additional, the self-reflection will lead to a higher level of
persistence and ambition to solve a problem, because it can be realized that a failure just means to learn
and not abandoning.

Figure 43: Learning Cycle of Kolb

Source: Dixon, N., 1999.

69
Figure 44: Four different Learning Styles

Source: Honey, Mumford, 1986.

According to Honey and Mumford there exist four different learning styles. The activist learns by doing,
the reflector learns by observing and thinking about occurrences, the theorist tries to understand the
theories behind actions and the pragmatist experiments the theory in the future (figure 44) (Honey,
Mumford, 1986, pp. 139). Considering my described personal learning process, I would categorize
myself, as ‘Activist’ according to Honey and Mumford. I learn by doing things, which means
experiencing something to understand theory. When I practice or interactive discuss about theory the
learning effect is even higher. This learning process was for example also used when I designed a
questionnaire and analysed data with excel for the first time. Knowing which type of learning style I can
categorize myself means to focus on this individual strength to achieve the best possible learning effect.

6.3. Personal Achievements

The MBA program challenged me in different ways. It was my first study in English in a multicultural
environment. Furthermore, it was also a new experience for me to write a lot of assignments in team or
self-responsible. The learning process in multicultural teams was especially challenging, because
different skills, different learning approaches and communication difficulties aggravated the teamwork.
Furthermore, I had the role of the MBA class representative, being contact person for the whole MBA
stream, organising events, taking part on meetings and support students if they had difficulties in school
or personal.
These challenges led to personal achievements. I met a lot of people from other cultures, which led to a
more open attitude for new learning approaches and cultural aspects. Furthermore, I learned how to
behave in multinational groups and respect other cultures. As class representative I developed conflict
solving and negotiation skills, strong speaking skills in front of people and I got used to the function as
intermediary. As class representative I developed a high degree of responsibility and empathy for my
environment. This function will help be later as team player in a company to understand how to support
team member, how to organize a team and how to communicate in the team. I will also be prepared to
express my opinion but also to listen to the advice of others. My social skills were improved
significantly through this role as MBA class representative. Furthermore, I learned how to write
assignments in relation to timing, structuring, researching, referencing and plagiarism, which helped me
a lot to write this master thesis. Furthermore, my developed English language skills in writing and
70
speaking helped me because I also wrote the master thesis in English. Through interactive lessons I also
developed analytical and logical skills, which helped me to analyse research findings. A great support
was the one-year preparation course ’Research Analysis Skills’, where I learned how to write a master
thesis in detail. I decided to specialize in the field of marketing during the MBA program because of
previous marketing focused bachelor study and working experience in the marketing field. In future I
am planning to make career also in the marketing sector. Therefore, I visited two marketing classes,
which provided me fundamental knowledge, which were deepened significantly for a long term through
learning for an exam, having classes, preparing case studies and presentations. But even more important
was the sum of all courses in different fields, to develop deep economic knowledge. With this
preparation I feel very good prepared to start a career in the marketing sector. This dissertation about
marketing strategies for E-cars in the German automobile sector will be my individual expertise.
Companies in the automobile market but also manufacturer of green products could consider this
dissertation as highly valuable expertise, which will increase my market value as applicant.

6.4. Problems encountered

During three months of dissertation writing some issues arose. I wrote the thesis back in my home
country Germany and therefore I had no personal contact with my supervisor just via telephone and I
did not have access to the Dublin Business School library. Through weekly good structured and
organized phone call meetings with my supervisor I could overcome not to meet my supervisor in
person. Electronic books, which were provided from the Dublin Business School, just a small amount of
books was useful for writing my master thesis. So I needed to find access for a library in Germany,
which also provide English sources with specific literature about green marketing and electronic cars. I
needed a lot of time to find the right access and suitable sources. Furthermore, the topic of electronic is
very actually and therefore it was also difficult to get deep academic papers about this new developing
topic. Moreover, the master thesis topic is limited for the German automobile industry, thus I often just
found sources in German, which were suitable for my master thesis topic. All in all, these not calculated
factors, which influenced the time scheduling significantly, challenged me. But I calculated a time
puffer for such occurrences and therefore I could overcome these issues. When challenges and issues
arose during the process of master thesis writing; I developed a high level of personal persistence and
ambition. Sometimes I was worried about some outcomes of the master theses and if I am doing
everything the right way. The advice and support of my supervisor showed me the right direction and I
grew personal as well as my portfolio of skills. I learned stopping to worry and starting to trust in my
skills and that I can handle every issue, that will arise. Even when I started to analyse data of the
questionnaire, what I never experienced before I trust in myself that I can handle this new situation.

6.6. Action plan for a life long Learning Process

I realized how much I learned and how far I developed during the one year of the MBA program. I
reached goals I would never have dreamed of, like my over average grade point average and my
developed responsibility as class representative of the MBA stream. During the master thesis writing I
started doing interviews for a job in Germany and I realized how helpful all the knowledge and skills
are, which I have gained from the MBA study, presenting my self in the best shape. I reached my goal,
getting a job as management consultant focused on marketing in one of the ten best business
consultancies worldwide. This achievement confirmed my personal development through the MBA
program at the Dublin Business School. I will keep a life long learning process in different fields,
because I learned that knowledge is a high valuable good, which can change your life and can never be
taken from you. In my spear time I will continue to read daily news papers, academic papers in my
graduated field, reading about the latest, global market developments and much more to keep the level
71
of personal intellectual progress. I identified my personal learning style as predominant activist learning
style, thus I am planning to improve my theorist learning style by trying to understand the theories
behind actions.

6.7. Conclusion
This part of self-reflection let me realize of the value of personal learning progress as base for being
successfully in the future career. It is important to reflect how issues can be overcome and how much I
can trust in my skills and ambition to reach an over average performance. I am aware of the progress
and success of the one year MBA programme, which is direction giving for the next year as career
entrant. My personal goal is to improve different learning styles to reach the best possible education my
whole life long.

72
7. Appendices
Appendix A: The BMW overall corporate strategy ‘Number One’
Over the last years, the BMW Group has become one of the leading providers of premium series for
individual mobility (BMW Group, 2013). In 2007, CEO Norbert Reithofer unveiled the new company
strategy, called ‘Number One’. The BMW will be the market leader of individual mobility in the
premium segment worldwide. The focus is on electronic mobility and car-sharing projects. The BMW
collaborates, for example, with Sixxt, a German car-leasing provider to create new car-sharing solutions
and a new navigation system. New car-leasing solutions for corporate fleet management were developed
with an affiliated leasing company Alphabet. In the motorcycle segment also, the BMW offers E-
scooter. Moreover, the BMW found a new start-up named ‘i Venture’ in New York collaborating with
the start-up ‘My City Way’ in Munich which is responsible both for the development of intelligent
mobile applications, facilitating the future mobility through information provided in real time public
transport, parking lots and charging stations. The strategy is based on the concept of a full solution
provider from product to an integrated service package (Schlesig, Seiwert, 2011). The BMW Group
enters new market segments through strategic collaborations to secure long-term access to technologies
and consumers. Moreover, the BMW is a strong brand because of its huge international manufacturing
and distribution network, which ensures the premium character of the BMW products (BMW Group,
2012, p. 4-8). To satisfy the consumer needs on a long-term basis, the company tries to maintain the
introduction and growth by penetrating the market with new or improved vehicle models every five
years (Stealing Share, 2013). The strategy seems to be successful as the BMW pointed out in the annual
report of 2013 that the demand for the new electronic car models is higher than expected (BMW Group,
2013).

73
 05.05.2014
Appendix B: Questionnaire

Dear Sir and Madame,

!
This! is! a! survey! for! the! master’s! thesis! on! the! topic,! ‘A! quantitative! investigation! for!
optimization! of! marketing! strategies! of! E<cars! in! the! German! automobile! market’,!
conducted!by!Julia!Dieterich,!an!MBA!student!of!the!Dublin!Business!School.!!
! ! ! ! !
If! you! agree! to! allow! your! data! to! be! used! for! the! purpose! of! this! market! research!
project,! we! will! trade! your! data! anonymously.! The! data! will! not! be! used! for! other!
reasons!or!given!to!third!parties.!The!data!will!be!processed!into!meaningful!information!
in! order! to! represent! the! consumer! behaviour! of! German! inhabitants! in! relation! to! E<
cars.!
!
Please!note!that!this!survey!is!voluntary!and!participation!can!be!withdrawn!at!any!time.!
!
1) I have read and understood the previous information and was given the
opportunity to clarify doubts.
2) I understand that participation is voluntary and that I can withdraw from the
survey at any time.
3) I agree to participate in this survey and permit my data to be used for the
purpose of academic investigation.

Date, Signature (Participant)

05.05.2014, Signature (Researcher)

!

Thank you for participating.

74
 Master These: Optimization of marketing strategies for the German E-car
 
Survey

1. What gender are you?

   
 Male



  Female





2. How old are you?

 
 <18




 
 19-­25




 
 26-­35




 
 36-­45




 
 46-­55




 
 >55





3. What is your highest education level?

 
 Lower  secondary  education




 
 High-­school  diploma




 
 University  degree




 
 Masters  Degree




 
 Phd





4. What is your monthly net income?

 
 <500  €




 
 600€-­1000€




 
 1.100€-­2000€




 
 2100€-­2500€




 
 >2500€





5. Do you own an E-­car or do you want to buy a E-­car presently?

 
 Yes




 
 No





6. When you buy your next car, is an E-­car an option?

 
 Yes




 
 No





75 Page 1
 Master These: Optimization of marketing strategies for the German E-car
7. If you would NOT buy an E-­car, please write down the most important reason.


  

8. What do you think is the cost of an average mid-­range E-­car like the BMWi3?
 
 <10.000€




 
 11.000€-­15.000€




 
 16.000€-­20.000€




 
 21.000€-­25.000€




 
 26.000€-­30.000€




 
 31.000€-­35.000€




 
 36.000€-­40.000€




 
 41.000€-­45.000€




 
 45.000€-­50.000€




 
 >50.000€





9. How fast can the BMWi3 be charged?

 
 <  2hours




 
 2-­3  hours




 
 4-­5  hours




 
 6-­7  hours




 
 8-­9  hours




 
 10-­11  hours




 
 12-­13hours




 
 >  13  hours





10. What do you think is the reach of the BMWi3 with a full charged battery?
 
 <  50  km




 
 51-­100  km




 
 101-­150  km




 
 151-­200  km




 
 201-­250  km




 
 >  250  km





76
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 Master These: Optimization of marketing strategies for the German E-car
11. What acceleration does the BMWi3 have in 3,7 seconds?
 
 from  0  to  30km/h




 
 from  0  to  40km/h




 
 from  0  to  50km/h




 
 from  0  to  60km/h




 
 from  0  to  70km/h




 
 from  0  to  80km/h





12. Which product attributes do you associate with the BMWi3? You can choose
several answers.
   
 dynamic



  practical




   
 complicated  technology



  environmental  friendly




   
 elegant



  not  environmental  friendly




   
 not  stylish



  modern




   
 stylish



  easy  to  handle




   
 sportiv



  old-­fashioned




   
 slow



  eco





13. If you consider the BMWi3 as a status symbol, which attribute do you associate the
most with it? Please choose one answer.
 
 not  successful




 
 average  successful




 
 very  successful




 
 understatement




 
 swanky





14. Which lifestyle do you associate with the BMWi3? Please just select one suitable
answer.
 
 Business  car




 
 Family  car




 
 Eco  car




 
 Trend  car




 
 Sports  car




 
 Every-­Day  car




 
 Not  allocatable





77 Page 3
 Master These: Optimization of marketing strategies for the German E-car
15. With which gender would you associate the BMWi3?
 
 Male




 
 Female




 
 can  not  decide





16. Which age would you associate with the BMWi3? You can select several answers.
 
 Students




 
 Young  Adults




 
 Adults




 
 Pensioner




 
 Every  Age





17. If the BMWi3 would be a person, with which characteristics would you associate
this person? You can choose several answers.
   
 sympathic



  introvert




   
 unsympathic



  eccentric




   
 cheeky



  impulsive




   
 creative



  honest




   
 funny



  dishonest




 
 extrovert





18. Which added value of the BMWi3do you perceive? Please choose THREE value
adding functions from the list and rank these according to importance for you ( 0= not
important, 1=important, 2=very important, 3=indispensable)
not  important important very  important indispensable

high  degree  of  safety 




 



 



 




high  comfort 



 



 



 




less  environmental   



 



 



 




damage  from  exhaust

no  fuel  costs 



 



 



 




good  acceleration 



 



 



 




high  degree  of  quality 



 



 



 




known  brand 



 



 



 




good  price/quality  ratio 



 



 



 




great  product  design 



 



 



 





78 Page 4
 Master These: Optimization of marketing strategies for the German E-car
19. Do you have trust in the expertise of BMW, a traditional engine car manufacturer, in
producing E-­cars?
 
 Yes




 
 No





20. If you consider the images of the marketing campaign of the BMWi3 below, do you
believe that BMW is honestly interested in reducing CO2 emissions to be environmental
friendly?
 
 Yes




 
 No




 
 Perhaps





BMWi3

79
Page 5
 Master These: Optimization of marketing strategies for the German E-car
21. Do you understand the marketing message of BMWi?
 
 Yes,  it  is  clear




 
 Im  not  sure




 
 I  feel  confused




 
 I  don't  get  the  message





22. Do you think the BMWi3 will be successfully sold in the future?
 
 Yes




 
 No




 
 Perhaps





23. Can you identify with the brand BMWi?

 
 Not  at  all




 
 A  little  bit




 
 Yes,  totally





24. Which feelings do you have when you think of the brand BMWi? You can choose
several answers.
   
 trustworthiness



  liking




   
 unhonesty



  fun




   
 excitement



  unfamiliar




   
 uncertainty



  lack  of  interest




   
 curiosity



  interest




   
 disliking



  confused





25. Watching the BMWi marketing movie, what kind of emotions do you feel? Please
take the IPad you got and press play (duration=1minute). You can choose several
answers.
   
 trustworthiness



  liking




   
 unhonesty



  fun




   
 excitement



  unfamiliar




   
 uncertainty



  lack  of  interest




   
 curiosity



  interest




   
 disliking



  confused





Thank  you  for  your  time  and  participation!  

80
Page 6
Appendix C: The target group LOHAS

The LOHAS is concerned about the environmental, social and economical health (Emerich, 2011, p. 5).
It describes a specific consumer group, who lives according to the principle of ‘Lifestyle of Health and
Sustainability’. In general, the highly influential LOHAS is interested in more sustainable and ethical
consumption. But the mainstream cannot identify with this, which is often perceived as extreme and
exaggerated attitude (Meyer, 2013, p. 127).

Appendix D: EU Data Protection Legislation

The researcher has to keep the data protection law of the EU, that is written down in ‘Directive
95/46/EC’. It talks about free movement of data within the EU. Each EU member state has to set up an
independent national institution to protect personal data on a high level. The law determines that the
data has to be fairly collected for a legitimate purpose. According to this law, it is forbidden to process
personal data in relation to ‘racial or ethnic origin, political opinions, religious or philosophical beliefs,
trade-union membership, and the processing of data concerning health or sex life.’ Moreover, it is
stipulated that the researcher has to provide information about the reason of the survey and follow
appropriate measures ‘to protect personal data against accidental or unlawful destruction or accidental
loss, alteration, unauthorized disclosure or access’ (European Union, no date). According to the German
law, the respondent has to sign that he agrees that his data will just be used for academic research and
not for any other purpose. The respondent will also be informed that his data will not be stored. Instead
the data will be used anonymously to generate a statement of the total behaviour, opinion and perception
of the German population, which may be published to create scientific value (Bundesministerium für
Justiz und Verbraucherschutz, no date).

Appendix E: BMWi3 Marketing campaign in Germany

81
Appendix F: Brand portfolio of BMW
The BMW Group is one of the most successful manufacturers of automobiles and motorcycles
worldwide and one of the largest companies in Germany. The company’s automobile sales increased to
6.4% in 2013 compared to the previous years. The BMW’s core business is premium vehicles and
premium services for individual mobility. Its business is divided into four segments: vehicles,
motorcycles, financial services and other entities (MarketLine, 2013, p.1-4). The corporate brand BMW
Group is divided into three premium brands BMW, MINI and Rolls-Royse to address different
consumer groups with different needs (BMW Group, no date). The car producer tries to lure consumers
through emotions focussed on sport, performance and innovation. The innovative and emotional brand
BMW is created for a dynamic and enthusiastic consumer profile, which has a passion for cars (Bruhn,
2004. p. 1935). The brand MINI serves the younger consumer, which should be perceived as exciting,
unconventional and creative. The luxury brand Rolls-Royse stands for supreme quality and exquisite
hand craftsmanship. The BMW brand is related to passion, dynamism, design and innovative
technology (BMW Group, no date). The three brands generated total sales revenue of 76.8 bn Euro in
2012 (BMW, 2012c). The brand MINI increased 1.2%, Rolls-Royce increased 1.5% and the BMW
brand increased 7.5% in 2013. The total value of the three brands went up 0.6% in 2013, which come
from the brand portfolio extension. This success justifies the title of the top automobile brand in the
premium segment worldwide (BMW Group, 2013). This academic study will thus focus on E-car
BMWi, being representative for all German E-car brand manufacturers.
The BMW Group used the corporate brand BMW to sell two different product portfolios: BMWi and
BMW M which together provide 33 different car models. The brand BMW M represents a brand image
of innovative and powerful racing engines and unique full-vehicle-concepts, which correlates with the
traditional brand image since 1972. The new brand BMWi is an innovative and sustainable mobility
concept presenting two new car models: the full electronic driven BMWi3 designed for an emission-free
urban driving and the BMWi8, the future of sports E-car. The two connected components of visionary
electronic car and complex mobility service, inspiring design and an understanding of a new sustainable
premium product of the BMWi brand. The BMW Group has long since positioned itself as a pioneer in
the field of sustainable mobility and was awarded several rankings for its sustainability concept along
the value chain, with the long-term goal to reduce emissions and increase the joy of driving (BMW
Group, no date). The BMWi series provides a stunning service package and numerous collaborations in
the energy sector to create a sustainable charging infrastructure for the product of the future in the EU
with 8000 charging stations (BMW Group, 2013).

Appendix G: Reasons for the high price of E-cars

High battery costs and R&D costs are the reasons for the high E-car prices. An additional cost driver is
the sales tax, which is perceptual, adding to the higher manufacturing costs. But studies show that the
price of E-cars will decrease on an average of 9.000 Euro till 2020 due to technological progress. A
price difference between conventional cars and E-cars is estimated at about 5.000 Euro in the long term
(Backhaus et al. 2011, p. 38). Furthermore, the acceleration of an engine car like the BMW1 is 0-
100km/h in 12.2 seconds and the BMWi3 is 0-100 km/h in 7.2 seconds. This shows the high
performance of the E-car BMWi3 in comparison to an engine car from the same brand. This valuable
advantage of the BMWi3 should be clearly underlined in the marketing communication. The fact that
79% of the respondents are not informed about the E-car’s great acceleration performance is an
indicator for a need of more marketing communications in relation to E-car product feature facts. A
motor vehicle has an annual fuel consumption of 1.700 litre with a driving performance of 22.000 km.
Replacing the motor vehicle with an E-car can bring a saving of 1.980 Euro a year (Backhaus et al.
2011, p. 40). E-cars have less maintenance costs compared to motor vehicles because E-cars have slight
wastage of the vehicle components and, therefore, have longer durability. This fact reduces the
82
maintenance costs on an average of 10 Euro a month. Additionally, for the E-car consumer does not
have to pay car taxes in the first five years in Germany (Backhaus et al. 2011, p. 44).

83
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